Putin–Modi Talks Signal New Phase in Russia-India Bilateral Trade Ties
Russian President Vladimir Putin held talks with Indian Prime Minister Narendra Modi on Friday at an annual summit and agreed to diversify mutual economic ties.
India, the world’s top buyer of Russian arms and seaborne oil, has rolled out the red carpet for Putin during his two-day state visit.
After the talks, Putin and Modi announced that India and Russia have finalized an economic cooperation program until 2030, which will help diversify mutual businesses to boost annual trade to $100 billion by 2030. They also emphasized strong energy ties.
Bilateral trade between the two countries stood at $68.7 billion in the last fiscal year ended March. The trade is heavily skewed in favor of Russia with deep deficits for India, which is looking to bridge by pushing exports.
“To achieve this significant goal, a program for the development of Russian-Indian economic cooperation until 2030 has been agreed upon,” Putin said. He said work is underway on an agreement for India to establish a free trade zone with the Eurasian Economic Union, a Moscow-dominated economic grouping of several ex-Soviet nations, adding that it could help increase trade.
Modi said after the talks that the two countries will work toward early conclusion of a free trade agreement with the Eurasian Economic Union. He also announced that India will soon start issuing free electronic visas for Russian tourists and groups visiting the country.
India–Russia Energy Bond
The Indian leader said energy security has long anchored India-Russia ties, with civil nuclear cooperation spanning decades. He added that such cooperation will continue, alongside collaboration in clean energy, shipbuilding, fertilizers and labor mobility.
“Russia is a reliable supplier of energy resources and everything necessary for the development of India’s energy sector,” Putin said. “We are ready to continue ensuring the uninterrupted supply of fuel for the rapidly growing Indian economy.”
India’s foreign secretary Vikram Misri told reporters that the recent sanctions imposed on Russian oil were discussed.
Without specifying India’s position on its purchases, Misri said the government’s priority was to secure the energy needs of its 1.4 billion people.
Misri said India’s private and state-run oil companies make decisions based on evolving market dynamics and commercial issues they confront while sourcing supplies.
“We are continuing our cooperation between the two countries,” he said.
Deepening Defence Ties
In a joint statement following the summit, the two sides said they have agreed to encourage joint manufacturing in India of spare parts and components for maintenance of Russian-origin arms and defense equipment. This would be done through transfer of technology and setting up of joint ventures.
India and Russia signed a pact in February to improve military cooperation, exercises, port calls, disaster relief assistance and logistics support. Moscow’s State Duma ratified the same ahead of Putin’s India visit.
India is also expecting to upgrade its Russian-made Su-30MKI fighter jets and accelerate deliveries of critical military hardware.
According to The Associated Press, Indian officials earlier said that Modi in the meeting with Putin would push for faster delivery of two further Russian S-400 surface-to-air missile systems. It has already received three under a 2018 deal worth about $5.4 billion. The delay has been tied to supply chain disruptions linked to the war in Ukraine.
