INDIA-RUSSIA RELATIONS

Posted 15 Feb 2024

Updated 22 Mar 2024

5 min read

Why in the news?

Recently, India and Russia signed three documents including a Protocol on consultations during the External Affairs Minister’s official visit to Russia in December 2023.

More about the news

The protocol will foster progress in military and economic cooperation, energy trade, military-technical cooperation, connectivity and people-to-people exchanges.

The duration of the protocol is four years (2024-2028).

Two other documents relating to the Kudan Kulam Nuclear Power Plants and an MoU on cooperation in pharmaceuticals and healthcare were also signed during the visit.

The longstanding and time-tested partnership between India and Russia is driven by shared interests of multilateralism, and global peace and prosperity.

Major Areas of India-Russia Cooperation and Its Significance

Defence and Security Cooperation	Russia is a major supplier of defense items to Indian armed forces and both nations are in joint research, development, and production of advanced defence items. Bilateral projects include the supply of S-400, licensed production of T-90 tanks and Su-30 MKI, production of Ak-203 rifles in India and BrahMos missiles among others. Cooperation is guided by the Agreement on the Programme for Military-Technical Cooperation for 2021-2031. INDRA as a tri-service bilateral military exercise.
International /Multilateral Cooperation	Russia supports India’s bid for a permanent seat in the UN Security Council (UNSC) and membership of Nuclear Suppliers Group (NSG). Also, both nations have an active engagement at: International/Multilateral Organizations (e.g. BRICS and SCO). Connectivity projects such as INSTC (International North-South Transport Corridor), etc. It helps to act decisively against international terrorism and cooperate on matters such as drug trafficking, issues in Afghanistan, etc.
Trade and Economic Cooperation	Bilateral trade during FY 2021-22 amounted to $13.2 billion. ($30 billion set for 2025) Bilateral investments between the two countries crossed the US$30 billion target set in 2018. ($50 billion target set for 2025)
Other Areas of Cooperation	Nuclear Energy: The impeccable non-proliferation record of India has strengthened the partnership for peaceful use of nuclear energy. India and Russia have also signed a tripartite pact with Bangladesh for civil nuclear cooperation. Space Cooperation: Russia has supported India’s space programme since its early days. E.g. Russia is supporting India’s 1^stmanned space mission ‘Gaganyaan’. Science and Technology: India-Russia relationship extends to the field of basic sciences as well including Russian-Indian Network (RIN) of Universities, Arctic and Antarctic research etc.

Challenges to India-Russia Relationship

Defence Challenges: India needs to reduce its defence supplies from Russia as part of defence modernization, and diversification and to avoid USA sanctions under CAATSA.

About CAATSA

CAATSA Act, also known as Countering America’s Adversaries Through Sanctions Act, was enacted by the USA in 2017 to impose sanctions on three nations, i.e., Russia, Iran, and North Korea.
It allows the imposition of sanctions on countries dealing with these three nations.
- E.g. India was threatened by CAATSA sanctions on the purchase of the S-400 air defence system from Russia.

Changing World Order: The USA-China rivalry is shifting the world order towards a bipolar world. It is against India-Russia’s vision for a multipolar world.
Expanding Geo-strategic Interests: As India grows beyond a regional power; its geo-strategic interests are expanding beyond the Indian Ocean and South Asia. E.g.
- The Indo-Pacific Region and the Eurasian Region where India is partnering with countries having stressed relations with Russia.
Natural inclination towards the West: Many experts believe that being the biggest democracy in the world, India shares a natural affinity towards the West (USA and major European nations) due to their democratic set-up.
Economic Challenges: High trade deficit between two nations. The regulatory impediments and the use of phytosanitary standards and non-tariff barriers by Russia add to it. E.g.
- Russia classifies tea as fruit and vegetable, leading to more phytosanitary restrictions.
- The increased oil purchases in 2022 and the strengthening of the Russian Ruble against the Indian Rupee will increase the deficit further.

Way Forward

Modernization of Defence Supplies from Russia through joint development and co-production of advanced weapons, promoting self-sufficiency and reduced dependence of India on others for modernization and diversity under Make in India.
- Joint manufacturing of Spare parts and Reciprocal Logistics Support for increased defence cooperation can also add to it.
Protect Multilateralism/Multipolarity at UN and other forums such as BRICS, SCO etc. for more rules-based international order.
Diversification of Trade to overcome the issues of limited economic relationship with high trade deficit.
- Positive outcome on the recent list of over 500 products from Russia to India for exports can be a good starting point.
Increasing private sector participation in the economic relationship with removal of barriers to trade and investment.
Operationalising Eastern Maritime Corridor: The proposed sea route that connects Chennai and Vladivostok (Russia’s Far East) will improve logistical connectivity.
Broaden collaboration on bilateral and regional issues covering new theatres of cooperation as part of shared common responsibilities on global peace and stability.