Context-

Prime Minister Narendra Modi’s visit to Moscow has been hailed as a significant event, showcasing exemplary relations between Russia and India. These relations illustrate how great powers should interact in a rapidly changing international order.

Foundations of the Relationship

The relationship between Russia and India is built on several key principles:

●     Responsibility to Citizens: Both governments prioritize the interests of their people. Leaders Narendra Modi and Vladimir Putin are committed to ensuring that their foreign policies reflect the needs and aspirations of their populations.

●     Equal Benefits: The partnership is based on mutual benefits and the ability to address national security and developmental challenges collaboratively.

●     Practical Contributions: The relationship is evaluated based on what each country can offer in terms of politics and economics at present.

●     Respect for Priorities: Both countries recognize and respect each other's international roles and obligations.

●     Mutual Respect: The partnership does not assume a hierarchical structure; instead, it is characterized by mutual respect and understanding.

Historical Context

While the friendship between Russia and India has deep historical roots, their current cooperation is not merely a continuation of past interactions. The relationship’s spirit and nature, formed earlier, emphasize respect for each nation's choice of socio-economic development models and political systems.

●     Early Diplomatic Ties

The diplomatic ties between Russia and India date back to the early 20th century. During the Cold War, India and the Soviet Union established a strong partnership based on mutual interests in defense, technology, and trade. This period saw significant cooperation in various fields, including space exploration, nuclear energy, and industrial development.

●     Post-Cold War Relations

Following the dissolution of the Soviet Union, Russia and India continued to maintain strong bilateral relations. The post-Cold War era required both countries to adapt to new global realities, leading to a redefined partnership focused on economic cooperation and strategic interests.

●     Economic and Trade Relations

The most tangible indicator of the robust relationship between Russia and India is their burgeoning trade turnover. The military-political conflict between Russia and the West has necessitated Russia’s "turn to the East," making economic ties with India increasingly crucial.

In the past 2.5 years, trade between Russia and India has grown 4.5-fold. By early 2024, India accounted for 9.1% of Russia's total trade turnover, up from 1.7% in 2021. Key areas of growth include:

●     Oil and Petroleum Products: Russian exports of these products to India reached $49 billion in 2023. This trade has been facilitated by favorable pricing and the growing energy needs of India’s expanding economy.

●     Coal: India imported $4 billion worth of Russian coal. This import is crucial for India's energy sector, particularly for its thermal power plants, which rely heavily on coal.

●     Fertilizers, Diamonds, and Sunflower Oil: India’s imports in these categories were significant, with fertilizers at $2.4 billion, diamonds at $1.1 billion, and sunflower oil just over $1 billion. These imports support India’s agriculture and industrial sectors, contributing to food security and economic growth.

●     Machinery and Equipment: India's exports to Russia in 2023 included about $1 billion worth of machinery, electrical equipment, and instruments. Notably, smartphone exports to Russia from India increased 14-fold. This export growth is driven by the competitive pricing and quality of Indian products.

The leaders of Russia and India have set an ambitious goal to achieve a bilateral trade turnover of $100 billion by 2030. This target reflects the potential of their economies and the complementary nature of their trade relations.

Commitment to Global Market Economy Principles

The remarkable growth in trade between Russia and India is primarily attributed to their adherence to global market economy principles. This adherence allows both countries to exploit new opportunities with significant flexibility. To maintain this flexibility, Russia and India are moving towards mutual settlements in national currencies. This transition is being facilitated both bilaterally and through BRICS initiatives.

Bilateral Economic Initiatives

●     Support for Mutual Investments: Enhancing mutual investments is critical for sustained economic growth. Both countries are creating favorable conditions for investments, including tax incentives and streamlined regulatory processes.

●     Development of Payment Infrastructure: Establishing a resilient payment infrastructure that can withstand external pressures is a priority. This includes developing secure and efficient systems for financial transactions and trade settlements.

●     Stimulating National Currency Settlements: Reducing trade imbalance by promoting settlements in national currencies helps in mitigating risks associated with currency fluctuations. This move also enhances economic sovereignty and reduces dependency on third-party currencies.

●     Insurance and Logistics Systems: Developing comprehensive insurance and logistics systems, including the North-South transport corridor, is vital given ongoing instability in Eastern Europe and the Middle East. This corridor facilitates trade and connectivity between Russia, India, and other regions, promoting regional economic integration.

Strategic and Geopolitical Dimensions

The India-Eurasian Economic Union Free Trade Area and the production of spare parts for Russian military equipment in India were also discussed at the summit. These areas of cooperation, although complex, signify a deepening of strategic ties.

●     Military Equipment and Technology Transfer: Russia and India have a long history of defense cooperation, including the supply of advanced military equipment and technology transfer. The agreement on the production of spare parts for Russian military equipment in India marks a significant step towards self-reliance in defense manufacturing.

●     Joint Military Exercises: Regular joint military exercises enhance interoperability and strengthen defense ties between the two countries. These exercises also contribute to regional stability and security.

●     Counterterrorism Cooperation: Both nations are committed to combating terrorism and extremism. They share intelligence and collaborate on counterterrorism initiatives to address common security challenges.

North-South Transport Corridor

The North-South transport corridor is crucial for integrating the southern states of the former USSR Central Asia and South Caucasus into broader international trade networks. This development underscores the strategic dimension of the Russia-India relationship.

●     Regional Cooperation: The transport corridor promotes regional cooperation, benefiting countries along the route. It also provides an alternative trade route, reducing dependency on traditional maritime routes.

India's Independent Foreign Policy

India's stance on the Ukraine conflict exemplifies its independent foreign policy. Despite global pressures, India has maintained a neutral position, advocating for peaceful conflict resolution and refraining from economic sanctions against Russia. This neutrality is a testament to India's commitment to its national interests and principles.

Diplomatic Balancing Act

●     Non-Aligned Movement Legacy: India’s foreign policy is influenced by its historical commitment to non-alignment. This legacy guides its approach to contemporary geopolitical challenges, allowing it to navigate complex international dynamics without being drawn into power blocs.

●     Strategic Autonomy: India’s strategic autonomy enables it to make decisions based on its national interests rather than external pressures. This autonomy is evident in its balanced approach to global conflicts and its efforts to maintain friendly relations with diverse countries.

Russia’s Perspective

From Russia’s viewpoint, India's neutral stance and its pursuit of balanced international relations signify that a just world order is possible. Russia values India's role as a non-aligned state, navigating global conflicts with a focus on its development goals.

●     Mutual Respect and Trust: Russia appreciates India’s principled stance and respects its independent foreign policy. This mutual respect and trust form the foundation of their bilateral relationship.

●     Collaborative Diplomacy: Both countries engage in collaborative diplomacy, addressing global challenges through dialogue and cooperation. This approach contributes to regional and global stability.

Conclusion

Prime Minister Narendra Modi's visit to Moscow and the subsequent discussions with President Vladimir Putin highlight the robust and evolving relationship between Russia and India. Grounded in mutual respect, shared principles, and practical cooperation, this relationship serves as a model for interactions between great powers in the contemporary world. As both nations look to the future, their commitment to global market principles and strategic cooperation will likely continue to drive their partnership forward, offering new opportunities for mutual benefit and contributing to global stability.

Source- VIF