Why is Russia important to India?

President Putin’s visit lasting for little less than 24 hours to India to attend 15^th India- Russian Summit is timed, when the relations between the two countries have dovetailed. India and Russia historically had strong strategic, military, economic and diplomatic relationships. The foundations for such bilateral relationships was laid down by Jawaharlal during the regime of Khrushchev’s who unabashedly supported India’s sovereignty over Kashmir and other Portuguese colonies (in 1955) and India’s claim for a permanent seat in the UN Security Council. Ties between both the nations flourished over a period of time with Soviet Union’s peace brokering during the 1965 Indo-Pak war and supporting India’s efforts of secession of East Pakistan. Russia helped to bail out India post two nuclear tests in 1974 and 1998 and provided cryogenic engines and other weaponry when the World had shut off its doors.  After the collapse of Soviet Union India maintained close relationships with Russia which culminated in signing of a strategic partnership in 2000 for increased cooperation in politics, defence, civil nuclear energy, anti-terrorism cooperation and space. Both countries are ambitious to foster relationship across the sixth dimension of economics by setting a target of $20 billion trade between two countries by 2015. This goal seems to be unrealistic as the existing trade accounts to $10 billion. Besides, Japan, Russia has the mechanism for Annual ministerial level defence reviews with India.

Prime Minister Modi after assuming power savoured in high level diplomatic engagements with immediate neighbours, Japan, China, Australia and the US. These effusive interactions overshadowed our ties with Russia and created an impression that these have suffered neglect. Although Modi’s personal invite to President Obama to grace the Republic Day as Chief Guest signalled India’s intentions to diversify its ties with the West, the high levels of trust between the India and Russia is believed to withstand the new change in India’s foreign policy. Modi interacted with the Putin during the BRICS summit and met him at G-20 summit. Putin’s is on his sixth visit to India and first such after the new government took the charge.

Currently Russia has come under severe censure from the US and Europe over his support to uprisings in east Ukraine and annexation of Crimea. Russian companies’ access to American and European Financial and technology market is slowly choked. Sanction-hit Russia is economically crippled and the collapse of global oil prices has accentuated the crisis. The combined result has been Russia’s dwindling foreign earnings and a rush to convert tumbling Rouble into internationally high priced currencies. Russia’s economic prognosis is grim and heading towards inflation and economic slowdown. Though Russian central banks tried to plug in a slew of measures to contain free fall of Rouble, they were forced to retreat.

Debilitating financial crisis might spell doom for domestic political scenario too. Against this back ground strengthening energy, defence and strategic ties with India and other Asian countries will be foremost on the agenda for Putin. Energy diplomacy can replace the waning defence business and nurture ties between the countries. India needs energy and Russia has the second largest reserves of natural gas. It is believed that $40 billion long-distance oil and gas pipeline from India to Russia can turn trade prospects to touch over $100 billion. But it was termed economically unviable but transportation of LNG would continue. Russia is the only country which doesn’t have any issues with the liability of India’s civil nuclear deal. Hence, nuclear energy cooperation can stand as Pillar of India-Russia Strategic partnership which can boost construction of nuclear power plants. India and Russia are contemplating on signing a free trade agreement with Customs Union of Russia, Kazakhstan and Belarus to join energy exploration in Russian fields. India’s defence ties with Russia had taken a rough ride owing to the cost overruns and delays in bilateral defence deals. Rightly so, India has now diversified its defence imports stretching from the US and Israel. But it can seal an agreement with Russia to develop the fifth generation fighter aircrafts. Incongruence with Make in India theme, another lucrative deal can be deepening engagement with India on diamond trade. Incidentally Modi and Putin would kick off the World Diamond conference on Thursday and can strike deal on the diamond business. India is largest manufacturing hub for cut and polished diamonds and Russia is the largest diamond producing country in terms of volume. Mined diamonds from Russia used to reach India via Belgium and Dubai by forging trade agreements transaction costs can be reduced.

The bilateral ties recently took a down turn with India expressing its concern over Russia’s defence deals with Pakistan and sale of new batch of helicopters while Russia is miffed over India’s purchase of Rafale fighters and American Apache attack helicopters. Incidentally Russia is leaning heavily towards China and both the countries have signed a contract worth $400 billion whereby Russia would supply Oil to China for over a period of 30 years last year. Even the defence deals between them are set to deepen. Our trade with Russia accounts to a fifteenth of its trade with China. It is highly incumbent on India to strengthen economic relationships. As a Eurasian power Russia is poignantly placed to control the maritime geopolitics of Asia. More so India must work with its traditional ally to rejuvenate its ties as it is being forcibly pushed into Chinese arms due to Western sanctions.

 

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