🔔This Festive Season, Invest in your future with our exclusive festive offer. Get up to 20% off on ALL COURSES with coupon code Fest20.

INDIA-RUSSIA RELATIONS: SIGNIFICANCE, CHALLENGES, WAY FORWARD

The India-Russia "Special and Privileged Strategic Partnership" is a time-tested relationship crucial for India's strategic autonomy. It anchors India's defense and energy security while providing a counterbalance in a multipolar world. Both nations must diversify trade and deepen cooperation to navigate emerging challenges and maintain a resilient partnership.

Description

Copyright infringement not intended

Picture Courtesy:  INDIAN EXPRESS

Context

India-Russia ties remain crucial for India's strategic autonomy, particularly regarding military dependence and discounted oil imports, which face pressure from recent US tariffs.

Evolution of India-Russia Relations

Early Years (1947-1955): India and the Soviet Union established diplomatic ties in 1947. It became a key partner in India's industrialization efforts, particularly in heavy industries, funded projects like the Bhilai and Bokaro Steel Plants.

Cold War Era (1955-1991): Relationship strengthened during this period, with the Soviet Union provided crucial support to India, including diplomatic backing on issues like Kashmir and Goa, using its veto power at the UN Security Council.

  • 1971 Treaty of Peace, Friendship, and Cooperation solidified strategic alliance, provided security during the 1971 war.
  • Soviet Union also emerged as India's major defense supplier.

Post-Cold War (1991-2000): After the Soviet Union's dissolution in 1991, the relationship experienced a period of uncertainty as Russia faced internal challenges.

  • A new Treaty of Friendship and Cooperation in 1993, replaced the 1971 treaty, revive the partnership.

Strategic Partnership Era (2000 onwards): Relations regained momentum with the Declaration on Strategic Partnership in 2000, established institutionalized dialogue mechanisms like annual summits.

  • In 2010, the partnership was elevated to a "Special and Privileged Strategic Partnership", reflecting deeper cooperation across political, security, trade, nuclear energy, counter-terrorism, and space sectors. 

Why is Russia important to India?

Defense & Security: Russia is still the largest supplier of defense equipment to India, although its share has decreased. Russia accounted for 72% of India's arms imports between 2010-2014, this dropped to 36% in 2020-2024. 

Energy Security: Russia is the largest crude oil supplier to India, accounting for over 35% of imports.

Geopolitical Balancing: India's relationship with Russia maintains strategic autonomy and balances its growing ties with the West and the US.

India's Policy Towards Russia

Strategic Autonomy: India maintains independent foreign policy, engage with multiple global powers, including Russia, to maximize its national interests without aligning with any single bloc.

Non-Condemnatory Stance on Ukraine Conflict: India has abstained from condemning Russia's actions in Ukraine, to safeguard its strategic interests, including access to Russian energy and defense supplies.

Focus on Multilateralism: India and Russia collaborate within multilateral platforms like the UN, BRICS, G20, and SCO, advocating for a multipolar world order based on international law.

Diversification alongside Engagement: India follows a strategy of diversifying its defense imports and promoting defense indigenization through initiatives like 'Make in India' and 'Atmanirbhar Bharat', while continuing to engage with Russia on crucial defense projects, and technology transfers.  

Areas of cooperation

Defense & Military-Technical Cooperation: India and Russia engage in joint research, development, and production of advanced defense technologies, like the BrahMos cruise missile and AK-203 rifles produced in India.

Energy Cooperation: Two-way investments in oil and gas, with Indian companies like ONGC-Videsh investing over $16 billion in Russian projects like Sakhalin-1.

  • Efforts to develop a skills corridor in the energy sector to promote education and training in oil and gas and new energy areas. 
  • Ongoing discussions on developing a hydrocarbon pipeline system to connect Russia and India. 

Trade and Economy: Bilateral trade reached $68.7 billion in FY 2024-25.

  • India's exports include pharmaceuticals and engineering goods, while imports from Russia are dominated by oil and petroleum products, fertilizers, and mineral resources.
  • Both countries aim to reach a bilateral trade target of $100 billion by 2030, supported by efforts to diversify the trade basket, improve logistics, and promote local currency settlements.
  • The International North-South Transport Corridor (INSTC) and the Chennai-Vladivostok Eastern Maritime Corridor (EMC) are crucial initiatives to reduce transit time and costs.

Science & Technology: Cooperation in areas like India's Gaganyaan manned spaceflight program, nanotechnologies, and quantum computing.

Challenges and obstacles in India-Russia relations

Growing Russia-China closeness: Russia's "no limits" partnership with China raises concerns in India, as China is India's primary geopolitical competitor.

India's increasing alignment with the West: India is strengthening ties with Western countries, particularly the US, for economic and strategic reasons, creating a divergence in geopolitical priorities with Russia.

Impact of Ukraine Conflict: Placed India in a diplomatic dilemma, criticism from Western nations for continued cooperation with Moscow. The conflict also creates uncertainty regarding Russia's ability to maintain supplies, particularly of defense equipment, due to international sanctions.

Defense cooperation challenges: Interoperability between Indian and Russian forces is low, as evidenced by the postponement of joint exercises.

  • India faces challenges with timely delivery of military hardware, including the delayed S-400 systems.
  • The US imposes secondary sanctions on countries trading with Russia, putting pressure on India's defense procurements from Russia. India is diversifying its arms imports away from Russia.

Trade imbalances: India experiences a trade deficit with Russia, largely due to increased Russian oil imports. This creates difficulties in rupee-rouble trade due to Russia holding a surplus of Indian rupees.

  • In 2023-24, India's imports from Russia increased to $ 61.44 billion, while its exports were at $4.26 billion, creating a trade deficit of $57. 18 billion.

Impact of Western sanctions and tariffs: US tariffs and potential sanctions on countries buying Russian oil impact India's trade and economic interests, affecting its manufacturing competitiveness and GDP growth.

Reduced people-to-people exchanges: Academic and cultural exchanges have declined, impacting the overall closeness of the relationship.

Geopolitical alignment vs economic interests: India prioritizes strategic autonomy, balancing ties with Russia, its traditional partner, with Western partnerships. India defends its oil imports from Russia as necessary for energy security. However, this stance created tension with the US.

Strained geopolitical understanding: Both advocate for a multipolar world order, however, they hold conflicting views on some issues, like the Ukraine war, Iran-Israel conflict.

  • Russia's denunciation of the Indo-Pacific concept and alliances like the Quad differs with India's increasing engagement in these forums.

Russia's engagement with Pakistan: Russia's efforts to deepen ties with Pakistan, including providing discounted oil and offering membership in INSTC, create discomfort for India

Logistical Challenges: The International North-South Transport Corridor (INSTC) faces setbacks due to regional conflicts, hindering trade connectivity.  

Way forward for strengthening India-Russia relations

Diversifying and Balancing Trade: Expand the trade basket beyond oil, focus on traditional sectors like metallurgy, chemicals, and space, and explore new avenues like transport engineering and IT.

  • Increase Indian exports to Russia and promote joint manufacturing in India of spare parts for Russian-origin defense equipment.
  • Expedite negotiations for a Free Trade Agreement (FTA) with the Eurasian Economic Union.

Deepening Defence Cooperation: Focus on modernization through joint development and co-production of advanced weapons, promoting self-sufficiency under 'Make in India'.

Broadening Multilateral Cooperation: Strengthen collaboration on bilateral and regional issues like the Roopur Nuclear Power Project in Bangladesh and developmental partnerships in Central Asia.

  • Continue close coordination at multilateral forums like the UN, BRICS, and SCO to advocate for a rules-based multipolar world order.
  • India must explain to the US its reliance on Russian oil for energy security and the economic benefits of discounted crude, which have helped stabilize inflation and support economic growth

Renewable Energy Cooperation: Explore collaboration opportunities in renewable energy sectors, including solar, wind, and green hydrogen, align with India's green transition goals.

Promoting Connectivity Initiatives: Utilize the International North-South Transport Corridor (INSTC), the Chennai-Vladivostok Eastern Maritime Corridor, and the Northern Sea Route to enhance trade and logistical connectivity.

Strengthening People-to-People Ties: Increase cultural exchanges and tourism, facilitated by e-visas and collaboration in areas like education and research.

  • Strengthen Tier II diplomacy by increasing contacts with the younger generation and academia.
  • Explore joint development in Russia's Far East, utilizing Indian investment and personnel. 

Conclusion

The India-Russia relationship, a Cold War-era strategic partnership, has evolved into a "Special and Privileged Strategic Partnership." Despite global dynamics, the relationship remains important due to its defense and energy cooperation, shared vision of a multipolar world order, and geopolitical significance. 

For Mains:  India Russia Relations l Russia's importance for India | INDIA-RUSSIA TRADE RELATIONSHIP l India- Russia defence relations

Source: INDIAN EXPRESS

PRACTICE QUESTION

Q. Increasing strategic alignment between Russia and China poses a challenge for India. Evaluate this challenge and suggest a way forward for India. 250 words

Frequently Asked Questions (FAQs)

The S-400 system is a crucial air defence asset that significantly enhances India's national security, demonstrating the continued defence reliance on Russia despite US pressure.

The biggest challenge is balancing the traditional partnership with Russia against India's growing strategic ties with the United States and the Western world.

It is a proposed sea route aimed at connecting India's eastern coast with Russia's Far East, significantly reducing transport time and boosting bilateral trade.

Free access to e-paper and WhatsApp updates

Let's Get In Touch!