Russian President Vladimir Putin and Indian Prime Minister Narendra Modi convened on October 6, 2023, during the 23rd Russia-India Summit in New Delhi, where they agreed to diversify their economic relationship. This summit comes as the United States intensifies its efforts to persuade India to reconsider its long-standing partnership with Russia, particularly in light of the ongoing conflict in Ukraine.
The meeting, marked by a warm reception from Modi, included a bear hug and enthusiastic handshake. Both leaders announced a comprehensive economic cooperation program aimed at enhancing bilateral trade to $100 billion by 2030. In the previous fiscal year, trade between India and Russia reached $68.7 billion, heavily favoring Russia and resulting in significant trade deficits for India.
To achieve their ambitious target, Putin stated that the countries have finalized a program for economic cooperation up to 2030. He also indicated that discussions are underway regarding a free trade agreement between India and the Eurasian Economic Union, which could further stimulate trade. “Russia is a reliable supplier of energy resources and everything necessary for the development of India’s energy sector,” Putin said, emphasizing the importance of energy ties in their relationship.
Modi echoed these sentiments, expressing commitment to expedite the conclusion of a free trade agreement with the Eurasian bloc. He announced that India would soon introduce free electronic visas for Russian tourists, enhancing people-to-people connections. Modi highlighted that energy security has long been a cornerstone of India-Russia ties, with ongoing collaboration in civil nuclear energy and clean energy initiatives.
Despite these advancements, the backdrop of geopolitical tension remains palpable. Critics argue that Putin’s visit may complicate India’s relationships with the European Union and the United States. The U.S. has expressed concerns that India’s continued purchase of Russian oil contributes to financing Russia’s military efforts in Ukraine. In August, President Donald Trump raised tariffs on Indian goods to 50%, linking these tariffs directly to India’s procurement of discounted Russian oil.
The U.S. Treasury has implemented sanctions against Russian oil giants like Lukoil and Rosneft, aiming to compel nations such as India to reduce their imports. Indian officials have maintained that New Delhi adheres to international sanctions and would comply regarding Russian oil purchases. The sanctions were a significant step, as they marked the first direct actions against Russia since Trump began his second term.
India’s balancing act has not gone unnoticed. Analysts suggest that New Delhi’s ongoing relationship with Russia, rooted in historical ties since the Cold War, complicates its efforts to forge a stronger partnership with the West. Praveen Donthi, a senior analyst with the International Crisis Group, noted, “The significant change now is its desire to be a strategic partner with the U.S. at the same time, which will be a diplomatic challenge.”
In preparation for the summit, Modi aimed to press Putin for the expedited delivery of additional Russian S-400 surface-to-air missile systems, following an earlier agreement worth approximately $5.4 billion that has been delayed due to supply chain disruptions related to the war in Ukraine. The two nations recently signed a pact to enhance military cooperation, encompassing joint exercises and logistics support.
India is also looking to boost its exports to Russia, focusing on sectors such as pharmaceuticals, agriculture, and textiles, while seeking to remove non-tariff barriers. Long-term agreements concerning the supply of fertilizers and the management of skilled Indian workers migrating to Russia are also on the agenda.
Putin’s visit marks his first trip to India since 2021, while Modi last visited Moscow in 2022. Their diplomatic exchanges underscore the complexities of international relations as India navigates its strategic interests amidst global tensions.
