Russian President Vladimir Putin and Indian Prime Minister Narendra Modi met on October 6, 2023, at the 23rd Russia-India Summit in New Delhi, where they discussed plans to enhance their economic partnership. This meeting occurs as the United States is urging India to reassess its long-standing relationship with Russia, particularly in light of the ongoing conflict in Ukraine.
The summit highlighted the importance of diversifying economic ties between the two nations. Both leaders announced the finalization of a new economic cooperation program set to extend through 2030, aiming to increase bilateral trade to $100 billion annually. Last fiscal year, trade between India and Russia reached $68.7 billion, but it heavily favors Russia, prompting India to seek ways to boost its exports.
During a warm greeting at an airport in New Delhi, Modi welcomed Putin with a bear hug and a firm handshake, suggesting a strong rapport between the two leaders. Following their discussions, Putin affirmed that India is a dependable partner for energy resources, stating, “Russia is a reliable supplier of energy resources and everything necessary for the development of India’s energy sector.” He emphasized their commitment to ensuring a steady supply of fuel to support India’s rapidly growing economy.
Strategic Cooperation and Trade Agreements
The two leaders discussed the potential establishment of a free trade zone between India and the Eurasian Economic Union, which comprises several former Soviet states. Modi expressed optimism about concluding a free trade agreement with this economic bloc soon. In addition, he announced that India would begin issuing free electronic visas for Russian tourists, indicating a desire to strengthen people-to-people ties.
Energy security remains a cornerstone of India-Russia relations, with a history of civil nuclear cooperation that spans decades. Both countries are committed to expanding collaboration in various sectors, including clean energy, fertilizers, and shipbuilding. Modi highlighted the need for increased exports of Indian pharmaceuticals, agriculture, and textiles to Russia, while also seeking the removal of non-tariff barriers that hinder trade.
Despite the strengthening of ties, some analysts caution that Putin’s visit could complicate India’s relationships with the European Union and the United States. Critics argue that India’s ongoing purchases of Russian oil could jeopardize crucial trade agreements with these partners, particularly as the U.S. has raised tariffs on Indian goods in response to New Delhi’s discounted Russian oil imports.
Military Cooperation and Geopolitical Implications
Putin’s visit also underscored the two countries’ military cooperation, which has been a point of trust between them. Modi indicated that he would push for the expedited delivery of two additional S-400 surface-to-air missile systems, following the receipt of three systems under a $5.4 billion deal from 2018. Delays in these deliveries have been attributed to supply chain disruptions linked to the war in Ukraine.
As the geopolitical landscape continues to shift, India’s efforts to balance its relationships with both Russia and the West are becoming increasingly complex. Praveen Donthi, a senior analyst with the International Crisis Group, noted that while India has historically maintained close ties with Russia, its current pursuit of a strategic partnership with the U.S. could pose diplomatic challenges.
Amid these developments, India is also finalizing trade negotiations with the European Union, which views Russia’s actions in Ukraine as a significant threat. The evolving dynamics reflect the delicate balance India is striving to maintain as it navigates its foreign policy in a rapidly changing world.
Putin’s last visit to India was in 2021, and since then, the two leaders have met sporadically, including a brief encounter at a summit in China in September 2023. As India continues to fortify its economic and military ties with Russia, the implications of these choices will resonate across global markets and diplomatic relations.
