India-Russia Relation

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Pillars of India Russia relations

  • Defence partnership- For India, Russia remains the sheet anchor of India’s security policy. The Defence ties, one of the highly influential aspect of their relation, rest on 3 features of technology transfer, joint development, marketing & selling and export of equipment, an agreement non-existent with any other country.
  • It has provided significant enhancement to India’s indigenous defence manufacturing.
  • Some of the major defence collaboration programs are: BrahMos Cruise Missile program, Sukhoi Su- 30 and Tactical Transport Aircraft.
Economic Relations
  • (Mostly Defence around 10 billion but China is around 100 billion)
  • It is an important pillar of the relations yet there remains a lot of scope to improve it further.
  • India and Russia are exploring various ways for enhancing bilateral trade.
Energy Security
  • In Energy sector Russia has built nuclear reactors in India (kudankulam reactors), adopted strategic vision in nuclear energy, offered oil, gas and investment opportunities in the fuel sector of Russia e.g. Sakhalin I etc.
  • One of ONGC plants available in Russia.
Space technology
  • India and Russia have a four-decade strong relationship in the field of space.
  • The former Soviet Union launched India’s first two satellites, Aryabhata and Bhaskar.
  • It has provided India Cryogenic engines to build heavy rockets.
International standing
  • Russia has supported India’s bid for permanent seat in UNSC.
  • It has been favoring Indian entry to Nuclear Supplier Group. Both countries coordinate each other over various forums including BRICS, SCO, G20 etc.
Cultural Relations
  • This is one the crucial aspects of cooperation between the two.
  • From people to people contacts (through programs like ‘Namaste Russia’) to sharing educational brilliance of both the countries through institutes like Jawaharlal Nehru Cultural Centre, both the countries have had good
  • Cultural links.
Recently, there has been a definitive decline in India Russia Relations.
Reasons:
  • India’s growing proximity to the United States: Rapidly expanding ties and growing Defence relationship between India and US and, India joining quadrilateral group led by the US has led to a strategic shift in Russia’s foreign policy.
  • India has signed logistic agreements like LEMOA, LSA with US.
  • India Russia relation lacks this aspect.
  • For Russia it has been a period of great hostility with West, thus pushing it to align with China.
Defence partnerships:
  • India has been recently diversifying its defence relations with US, Israel etc. Russia’s share of Indian defense imports fell from 79 percent between 2008-2012 to 62 percent between 2013-2017.
  • India withdrew from Russia’s fifth-generation fighter aircraft project because of delays and differences over cost, technologies and flexibility for future upgrades.
One Dimensional Trade
  • Trade has been one-dimensional i.e. Defence based. Despite a 42 percent boost from the previous year, trade still only touched $10.7 billion in 2017-18.
  • This is far below potential in comparison to India’s trade with China ($89.7 billion), the United States ($74.5 billion).
  • There are a number of issues that hinder India-Russia trade, like, connectivity issues, distance, weak banking links, cumbersome regulations on both sides and Russia’s restrictive visa regime.
Russia’s changed foreign policy posture:
  • Towards Pakistan: Russia in 2014 lifted arms embargo on Pakistan.
  • Russia and Pakistan conducted a military exercise in September 2016.
  • In 2017, a military-technical cooperation agreement was signed which deals with arms supply and weapon development.
  • All these factors raised concerns in India.
Towards China:
  • Increasing strategic military relations between Russia China also impacted India.
  • Russia relations. Russia has sold advanced military technology to Beijing, endorsed China’s One Belt One Road and has urged India to overcome its objections to it.
  • There has also been concern about Moscow leaning toward Beijing in forums like the BRICS.
  • Towards Taliban: Russia is showing inclination towards Taliban in Afghanistan while India continues to have concerns about the group. (Delhi Declaration 2021)
Steps taken to Normalise Relations
  • Sochi Informal Summit: The strategic partnership between the two has been elevated into a "special privileged strategic partnership”.
  • Reinforced defence ties:
  • Materializing of Su-400 air defence systems and nuclear-powered submarine (Chakra III) deal despite threats of sanctions by US under CAATSA.
  • Russia agreed for the construction of Ka-226 helicopters in India under Make in India initiative.
  • For facilitating cooperation in defence, both established Indian-Russian Intergovernmental Commission on Military and Military Technical Cooperation (IGC-MMTC).
  • It emphasises that military-to-military ties are as important as military technical cooperation related to weapons and systems.
  • The First ever Tri Services Joint Exercise between Indian and Russian Armed Forces Exercise INDRA- 2017 was successfully conducted. Russia is the only country with which India holds a joint tri-service exercise.
  • REFER - 5 Editorials – 58th Edition
For Trade
  • In 2017 trade between both countries increased by 20%. Two countries decided to reach USD 30 billion investment goal by 2025. Both the sides agreed to actively promote joint projects in third countries in sectors such as railways, energy and others.
  • Regular India Russia Strategic Economic Dialogue started in 2018. Second India-Russia Strategic Economic Dialogue identified 6 focus areas, covering Transport, Agriculture, Small and Medium Business, Digital Technologies, Finance, Tourism & Connectivity.
  • A MoU between National Small Industries Corporation of India and the Russian Small and Medium Business Corporation was signed in order to give a fillip to small and medium industries.
  • For increasing connectivity both sides called for the development of International North South Transport Corridor (INSTC).
  • The launch of the Green Corridor project aims at the simplification of customs operations in respect of goods being transported between India and Russia.
  • Also, there are talks of the signing of an FTA between Indian and the Eurasian Economic Union (EEU).
  • India Russia decided to hold the first ever India-Russia Start-Up Summit and portal.
  • Cooperation in development of oil in Russia including its arctic shelf and joint development of projects on the shelf of the Pechora and Okhotsk Seas. E.g. Vankorneft and Taas-Yuryakh in Russia and the participation of the PJSC Rosneft oil company in the Essar Oil capital.
  • Russia will support India in its first man mission to space i.e. Gaganyan.
  • First Indo-Russia 2+2 Dialogue: It is the first 2+2 meeting between the foreign and defense ministers of the two countries. India has held a 2+2 format of meetings with member nations of the Quadrilateral Security Dialogue (Quad) — the US, Japan and Australia.
  • Agreement for Kalashnikov Rifles: The two sides signed two contracts for the manufacture of nearly 600,000 AK-203 rifles under a joint venture in Amethi, Uttar Pradesh.  
  • Agreement for Military Cooperation: The two countries also signed an agreement for military technology cooperation for the next decade, from 2021 to 2031. India underlined its goal of becoming Russia’s defense development and production partner from just a buyer. The two sides are now looking at expanding the format of exercises to make them more complex as well as Ideas for expanding India-Russia cooperation in Central Asia.
  • Moving Ahead on Reciprocal Exchange of Logistics Agreement: Beyond defense sales, a Reciprocal Exchange of Logistics Agreement (RELOS), as well as a Navy to Navy cooperation MoU are at advanced stages of conclusion.
  • Go Ahead with S-400 Air Defense System Deal: India asserted that it follows an “independent foreign policy”, hinting at the US’ Countering America’s Adversaries Through Sanctions Act (CAATSA). This is referred to in the context of supply of S-400 air defence missile systems which began this month and will continue to happen.
  • Discussion on Geopolitical Hotspots: The situation in Afghanistan and the Middle East has wider repercussions including for Central Asia.

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