Perspective: PM Modi in Russia | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

PM Modi in Russia

Why in the News?

• The Prime Minister of India recently paid a high-profile visit to Russia for the 22nd India-Russia annual summit with the Russian President. This visit underscores India's multipolar vision in its global outreach.

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

• Political Relations: India and Russia emphasized the resilience of their ties despite complex geopolitical challenges. They aim to build a balanced, mutually beneficial, sustainable, and long-term partnership.
• Trade and Economic Partnership: The leaders set a target to boost bilateral trade to USD 100 billion by 2030 and agreed to promote the use of national currencies in trade.
• Transport and Connectivity: Agreements were made to expedite projects like the Chennai-Vladivostok Corridor, the International North-South Transport Corridor (INSTC), and the Northern Sea Route.
• Energy Partnership: Russia agreed to explore increasing the supply of coking coal and exporting anthracite coal to India, marking the energy sector as a significant pillar of the strategic partnership.
• Cooperation in the Russian Far East and Arctic: An agreement was signed for India-Russia cooperation in trade, economic, and investment in the Russian Far East (2024-2029) and in the Arctic zone.
• Civil Nuclear Cooperation: Both countries welcomed progress in building the remaining nuclear power plant units at Kudankulam and committed to meeting the schedule, including delivery timelines.
• Space Cooperation: India's ISRO and Russia's Roscosmos will strengthen their partnership in peaceful space exploration, including human spaceflight programs, satellite navigation, and planetary exploration.
• Military and Technical Cooperation: Agreements were made to promote joint manufacturing of defense equipment in India, with technology transfer and potential 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: Emphasizing the importance of the UN, both sides reaffirmed their commitment to international law and the principles of the UN Charter, including non-interference in member states' internal affairs.
• Counter Terrorism: The leaders strongly condemned recent terrorist attacks in Jammu & Kashmir and Moscow.
• Recognition: President Putin conferred on PM Modi Russia's highest civilian honor, the "Order of Saint Andrew the Apostle," for strengthening the strategic partnership.

Significance of the Visit

• Boosting Trade Linkage: Increased traffic on the INSTC, Northern Sea Route, and Chennai-Vladivostok maritime corridor could reduce transit time from 40 to 20 days.
• Increasing Regional Trade: A free-trade agreement with the Eurasian Economic Union could enhance India's role in Eurasian trade.
• People-to-People Connectivity: Establishing new consulates in Ekaterinburg and Kazan reflects the growing Indian diaspora in Russia.
• Business Growth: Indian pharmaceutical companies like Dr. Reddy’s Laboratories, Sun Pharma, and Cipla have become major suppliers of medicines in Russia, surpassing Germany.
• Capital Market Development: Russian banks investing idle rupees in Indian shares, government securities, and infrastructure projects has reduced transaction costs.
• Repatriation: Putin agreed to discharge and repatriate Indians serving in the Russian armed forces, marking a diplomatic victory for New Delhi.

Why India and Russia Need Each Other

• Strategic Autonomy: India remains committed to its policy of strategic autonomy despite Western efforts to draw it into their sphere of influence.
• Show of Support: PM Modi’s visit revitalized Putin's global standing, showcasing India as a democratic powerhouse and economic giant.
• Reliable Ally: Russia is a steadfast ally for India, playing a mediating role in regional issues like the India-China border standoff.
• Multipolar World: Both countries, members of BRICS, G20, and SCO, pursue an interest-based foreign policy.
• India as Perfect Balancer: India aims to be a pole in a multipolar world, balancing relations between the West and Russia.

• Balancing Act with the US

• Skipping SCO Summit in Kazakhstan: India's absence sent a message to the US and Western bloc that it is not siding with Russia amidst the Ukraine conflict.
• Diversifying Defense Partnerships: India has increased arms imports from the US, France, and Israel while Russia remains its largest arms supplier.
• No New Arms Deals: No new arms deals with Russia were announced despite renewed security challenges.
• Diverging Geopolitical Alignments: India has strengthened security cooperation with the US while Russia deepens ties with China and Pakistan.
• Bridge between East and West: India, a member of both BRICS and the Quad, navigates between Western and Russian interests.
• Peace in Ukraine: India calls for peace in Ukraine, participating in the peace summit without condemning Russia’s actions.

Challenges in India-Russia Relations

• No Big Military Deal: No major military deals have been concluded recently, affecting the military-technical partnership.
• Delay in Supply of Weapons: The war in Ukraine and Western sanctions have raised concerns about timely weapon supplies to India.
• Russia-China Congruence: Russia's close relationship with China raises concerns about prioritizing arms supplies to China over India.
• Over-Estimation of Potential: Challenges in engaging with the Russian Far East and reviving the Chennai-Vladivostok corridor remain due to labor capacity and sanctions.
• Sanctions Hurdle: Doing business with sanctioned Iran via INSTC and frequent cargo handling could be problematic.
• Trade Deficit: India faces a significant trade deficit with Russia, with exports struggling despite increased oil imports.
• Hampered Relations with the West: Pressure from the West to distance from Russia after the Ukraine invasion persists, challenging India’s strategic autonomy.

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