Perspective: PM Modi in Russia | 18 Jul 2024

Why in News?

Recently, the Prime MInister of India paid a high-profile visit to Russia to hold the 22nd India-Russia annual summit with the President of Russia. This visit reflected India's underlying multipolar vision in its outreach to the rest of the world.

What are the Key Highlights of the 24^th SCO Summit?

• Political Relations: Both sides emphasized that India-Russia ties have stayed strong despite the complex and challenging geopolitical situation. They have worked to create a balanced, mutually beneficial, sustainable, and long-term partnership.
• Trade and Economic Partnership: The leaders agreed to boost and sustain bilateral trade growth by setting a target of USD 100 billion by 2030. They also decided to promote using national currencies for bilateral trade.
• Transport and Connectivity: They agreed for faster completion of projects like the Chennai-Vladivostok Corridor, International North-South Transport Corridor (INSTC), and Northern Sea Route.
• Energy Partnership: Energy sector has emerged as a significant pillar of the Special and Privileged Strategic Partnership. Russia agreed to explore increasing the supply of coking coal and exporting anthracite coal to India.
• Cooperation in the Russian Far East and Arctic: Both countries signed an agreement for India-Russia cooperation in trade, economic, and investment in the Russian Far East from 2024 to 2029, as well as cooperation in the Arctic zone of Russia.
• Civil Nuclear Cooperation: Both welcomed the progress in building the remaining nuclear power plant units at Kudankulam and agreed to stick to the schedule, including delivery timelines.
• Space: Both sides strengthened partnership between India's ISRO and Russia's Roscosmos for peaceful space exploration, including human spaceflight programs, satellite navigation, and planetary exploration.
• Military and Military Technical Cooperation: Both agreed to promote joint manufacturing of defense equipment in India involving technology transfer and allow exports to friendly third countries.
• Education and Science & Technology: Both sides agreed to enhance cooperation under the Roadmap for Science, Technology & Innovation Cooperation 2021.
• UN and Multilateral Fora: Both sides emphasized the importance of the United Nations and the need to respect international law. They reaffirmed their commitment to the principles of the UN Charter, including the principle of non-interference in the internal affairs of member states.
• Counter Terrorism: They strongly condemned the recent dastardly terrorist attack on an Army convoy in Kathua area (Jammu & Kashmir) and on the Crocus City Hall in Moscow.
• Recognition: President Vladimir Putin conferred PM Narendra Modi Russia's highest civilian honor, the "Order of Saint Andrew the Apostle," for his significant role in strengthening the strategic partnership between India and Russia.

What is the Significance of This Visit?

• Boosting Trade Linkage: If traffic on the INSTC, Northern Sea Route and Chennai-Vladivostok maritime corridor increase, transit time could be reduced from 40 days to 20 days. 
• Increasing Regional Trade: A free-trade agreement with the Eurasian Economic Union can result in India taking a more proactive role in Eurasian trade. 
• People to people Connectivity: Establishing two new consulates in Ekaterinburg and Kazan reflects the increasing presence of an Indian diaspora across Russia.
• Business Growth: The Indian pharmaceutical sector has become a major supplier of medicines in Russia, surpassing Germany. Companies like Dr. Reddy’s Laboratories, Sun Pharma, and Cipla have partnered with Russian firms to produce generic medicines locally.
• Capital Market Development: Banks in Russia have invested the idle rupee in Russian accounts in Indian shares, government securities and infrastructure projects and the transaction cost involved in converting rupees to ruble have come down.
• Repatriation: Putin agreed to discharge and repatriate the Indians serving in the Russian armed forces is a significant diplomatic victory for New Delhi.

Why India and Russia Need Each Other? 

• Strategic Autonomy: Despite Western efforts to attract India into its sphere of influence, India remains committed to its policy of strategic autonomy.
• Show of Support: Indian Prime Minister’s visit has revitalized Putin's global standing. Unlike visits from leaders of pariah states like North Korea or nations lacking democratic norms like China, India, as a democratic powerhouse and economic giant currently ranked fifth globally.
• Reliable Ally: Russia remains an all-weather friend in the neighborhood that India can return to as a moderating factor in regional issues. During the border standoff between India and China, Russia played a mediator role.
• Multipolar World: Both Russia and India are members of BRICS (Brazil, Russia, India, China, and South Africa), the G20, and the Shanghai Cooperation Organization (SCO) and pursue an “interest-based foreign policy”.
• India as Perfect Balancer: India is in a “geopolitical sweet spot” due to its image as a democratic counterbalance to China. India aspires to be a pole in a multipolar world, so it will continue to maintain a balance between the West and Russia.

How does India do a Balancing Act with the US? 

• Skipping SCO Summit in Kazakhstan: India skipped the meeting in Kazakhstan in a message to the US and the rest of the Western bloc that it was not siding with Russia when its action in Ukraine raises questions of international law and human rights.
• Diversifying Defense Partnerships: While Russia remains India’s largest arms supplier, India has significantly increased its arms imports from the United States and other countries like France and Israel. 
• No New Arms Deals: Despite renewed challenge to India’s security  along the Line of Actual Control (LAC), no new arms deals with Russia were announced during PM’s visit. 
• Diverging Geopolitical Alignments: India has strengthened security cooperation with the US through nuclear deals, defense purchases, and support for the Indo-Pacific strategy, despite Russia's opposition. Meanwhile, Russia is deepening its ties with China, India's primary strategic competitor, and increasing engagement with Pakistan.
• Bridge between East and the West: India is a member of both BRICS and the SCO, as well as Quad in the Indo-Pacific. Putin’s ally Xi Jinping views the Quad as a challenge to its monopolistic designs in the Asia-Pacific region.
• Putin Reluctant to Xi Jinping Actions: Despite the world expressing concerns over China’s growing territorial claims and adventures in the South China Sea and the littoral nations, Putin does not condemn or criticize Xi’s salami slicing policy in the region. India remains committed to the Quad.
• Peace in Ukraine: While India has not condemned Russia’s war in Ukraine, it has consistently called for peace. India participated in the peace summit on the Ukraine conflict in Switzerland at an appropriate level.

What are the Challenges Associated with India-Russia Relations?

• No Big Military Deal: The military-technical partnership has been the bedrock of India-Russia relations. In recent years, no major military deal has been concluded between the two nations since the S-400 anti-missile defense system. 
• Delay in Supply of Weapons: The war in Ukraine and western sanctions has also raised concerns about the timely supply of weapons exports to New Delhi.
• Russia-China Congruence: Russia's close relationship with China raises concerns that China might receive priority for Russian arms over India. 
• Over-estimation of Potential: Despite New Delhi's efforts to engage with the Russian Far East and revive the Chennai-Vladivostok maritime corridor, the region faces challenges in terms of labor capacity and access to foreign markets due to sanctions imposed by Japan and South Korea on Russia.
• Hurdle due to Sanctions: INSTC would involve Indian firms doing business with a sanctioned Iran, and the frequent loading and unloading of cargo may prove to be a hurdle.
• Trade Deficit: Russia has become India's primary supplier of oil, but Indian exports to Russia have encountered difficulties. It resulted in a significant trade deficit of USD 57 billion in bilateral trade valued at USD 66 billion for the fiscal year 2024.
• Hamper Relation with West: India has faced pressure from the West to distance itself from Moscow after Russia invaded Ukraine. US Ambassador to India Eric Garcetti emphasized that "there is no such thing as strategic autonomy" during a conflict and said that in today's interconnected world, "no war remains distant anymore."

Way Forward:

• Strategic Partnerships: Reinforce strategic partnerships through frameworks such as the annual summit and strategic dialogue mechanisms.
• Enhancing Defense Collaboration: Collaborate on joint defense development projects to ensure technology transfer and self-reliance. 
• Trade Diversification: Expand trade beyond traditional sectors like defense and energy to include technology, pharmaceuticals and agriculture.
• International Forums: Work together in international forums like the UN, BRICS, and the SCO to address global challenges and promote shared interests.
• Media Engagement: Use media and public diplomacy to address misperceptions and highlight the benefits of the bilateral relationship.