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Testing Times ahead for Indo-Russia ties or it's time to cherish ?
Relations with India have always been and I am sure will be one of the most important foreign policy priorities of our country. Our mutual ties of friendship are filled with sympathy, and trust, and openness. And we must say frankly that they were never overshadowed by disagreements or conflict. This understanding - this is indeed the common heritage of our peoples. It is valued and cherished in our country, in Russia, and in India. And we are rightfully proud of so close, so close relations between our countries.
— Dmitry Medvedev, about relations with India
India’s rise has changed the nature of its relationships with other major players in the Asia-Pacific region. In response, regional states and great powers have moved to “engage” India. But what does “engagement” involve? And which “engagement strategies” – diplomatic, military, economic or public – have worked and which have not? Finally, what do the “engagement of India” tell us about India’s place in world politics and the best means by which it and others can manage its rise?
Indo-Russian relations refer to the bilateral relations between the Republic of India and the Russian Federation. During the Cold War, India and the Soviet Union (USSR) enjoyed a strong strategic, military, economic and diplomatic relationship. After the collapse of the USSR, Russia inherited the close relationship with India, even as India improved its relations with the West after the end of the Cold War.
Traditionally, the Indo-Russian strategic partnership has been built on five major components: politics, defence, civil nuclear energy,anti-terrorism co-operation and space.These five major components were highlighted in a speech given by former Indian Foreign Secretary Ranjan Mathai in Russia. However, in recent years a sixth component, economic, has grown in importance with both countries setting a target for US$30 billion in bilateral trade by 2025.In order to facilitate this target both countries are looking to develop a free trade agreement. Bilateral trade between both countries in 2012 grew by over 24%.
The powerful IRIGC is the main body that conducts affairs at the governmental level between both countries. Both countries are members of many international bodies where they jointly collaborate closely on matters of shared national interest. Important examples include the UN, BRICS, G20 and SCO where India has observer status and has been asked by Russia to become a full member.Russia has stated publicly that it supports India receiving a permanent seat on the United Nations Security Council. In addition, Russia has expressed interest in joining SAARC with observer status in which India is a founding member.
India is the second largest market for the Russian defence industry. In 2004, more than 70% of the Indian Military's hardware came from Russia, making Russia the chief supplier of defence equipment. India has an embassy in Moscow and two consulates-general (in Saint Petersburg and Vladivostok). Russia has an embassy in New Delhi and four consulates-general (in Chennai, Hyderabad,Kolkata, Mumbai).
According to a 2014 BBC World Service Poll, 45% of Russians view India positively, with only 9% expressing a negative vie
Changing Geopolitical Dynamics
The last decade and a half has witnessed remarkable strengthening of relations between India and USA across a range of areas including political, strategic, defence, energy and others. The same period has seen a significant decline in relations between Russia and the US especially through imposition of far-reaching sanctions since last year over the Ukraine crisis.
This coupled with the rapid decline in international energy prices, export of which is one of the largest components of foreign exchange earnings by Russia, has pushed it into a close relationship with China. Unanticipated fallout of these developments is that China has emerged as the stronger and Russia the subordinate partner in this relationship.
In substantive terms, relations between India and Russia have also lost some of their sheen as Russia considers its position as the exclusive supplier of defence equipment has been compromised with minimal fresh orders coming its way. It is upset that its position of primacy in defence supplies has been usurped by the United States.As with China, there is little meeting ground between strategic interests of Russia and Pakistan. This is particularly evident in the rapid developments in Afghanistan. Taliban attacks on Afghan assets and people are growing in frequency and intensity. This assists the rise of regional terrorist groups. This makes the situation dangerous for Russia as it is the guarantor of security in the Central Asian region.
Indo-Soviet Treaty of Friendship and Cooperation
The Indo–Soviet Treaty of Peace, Friendship and Cooperation was a treaty signed between India and the Soviet Union in August 1971 that specified mutual strategic cooperation. The treaty was a significant deviation from India's previous position of non-alignmentin the Cold War and in the prelude to the Bangladesh war, it was a key development in a situation of increasing Sino-American ties and American pressure.The treaty was later adopted to the Indo-Bangladesh Treaty of Friendship and cooperation in 1972.
India's relation to Soviet Union initially after the former's independence was ambivalent, guided by Nehru's decision to remain non-aligned, and his government's active part in theCommonwealth of Nations. However, in February 1954, the U.S. administration of President Dwight D. Eisenhower announced the decision to provide arms to Pakistan, followed a month later by Pakistan joining the SEATO and subsequently the CENTO. These agreements assured Pakistan the supply of sophisticated military hardware and economic aid.
But todayhe developing situation alarmed India, which had uncomfortable relations with Pakistan. Since Pakistan also was near the Soviet Union, it also provided Moscow with the necessity as well as the opportunity to develop its relations with India. India's status as a leader of the Non-aligned Movement would also allow the USSR to bolster Soviet policy in the Third World. India and the USSR therefore pursued similar policies based on common security threat born out of the US interests in Pakistan. It was in this context that India and Soviet Union exchanged military Attaches.[4] Although Indo-Soviet cooperation had begun, the investment of soviet-military aid to India only begun in the context of deteriorating Sino-Soviet and Sino-Indian relations. Following the 1962 Sino-Indian war, the Sino-Pakistani axis was also an impetus for growing cooperation between India and the Soviet Union.
India-Russia Defence Cooperation
Defence cooperation is an important pillar of the India-Russia strategic partnership. It is guided by the Programme for Military Technical Cooperation signed between the two countries which is valid, at present till 2020. It enshrines the interest of the two governments to further develop and strengthen the military and technical cooperation in the sphere of research and development, production and after sales support of armament systems and various military equipment. The two sides also have periodic exchanges of armed forces personnel and military exercises.
India and Russia have an institutionalized structure to oversee the complete range of issues of military technical cooperation. The India-Russia Inter-Governmental Commission on Military Technical Cooperation (IRIGC-MTC), set up in 2000, is at the apex of this structure. The two Defence Ministers meet annually, alternately in Russia and India, to discuss and review the status of ongoing projects and other issues of military technical cooperation. There are two Working Groups and seven Sub-Groups under the IRIGC-MTC, which review and discuss an array of military technical issues. In 2008, a high level committee called the High Level Monitoring Committee (HLMC) was set up with Defence Secretary from the Ministry of Defence of the Republic of India and Director of Federal Service for Military Technical Cooperation (FSMTC) from the Russian Federation as its co-chairs.
Bilateral projects currently underway include indigenous production of T-90 tanks and Su-30-MKI aircraft, supply of MiG-29-K aircraft and Kamov-31 and Mi-17 helicopters, upgrade of MiG-29 aircraft and supply of Multi-Barrel Rocket Launcher Smerch.
Over the years, cooperation in the military technical sphere has evolved from a purely buyer-seller relationship to joint research, design development and production of state of the art military platforms. Production of the Brahmos cruise missile is an example of this trend. The two countries are also engaged in joint design and development of the Fifth Generation Fighter Aircraft and Multi-Role Transport Aircraft.
Joint exercises between the two Armed Forces are held under the title "INDRA". In the year 2014, Joint exercises of Army, Navy and the Air force were conducted. Joint exercises for the year 2015 for all the three services are under consideration.
India and Russia have several major joint military programmes including:
Statistics for India’s Trade with Russian Federation
INDIA-RUSSIA TRADE STATISTICS
Major Indian investment in Russia
ONGC Videsh Ltd. in Sakhalin-I Project (US $ 2.2 bn); Imperial Energy (US $ 2.1 bn); Commercial Bank of India Ltd. (JV of SBI and Canara Bank); TATA Motors for planned assembly of small capacity lorries and buses; SUN Group- energy and real estate; Carborandum Universal – production of abrasives at the Volzhsky Abrasive Work in Volgograd; Tata Tea; Woodland Shoes; De Core; Choron Diamonds; L&T; Universal Food technologies (J.V. Gokul); Pharma companies such as Dr. Reddy’s Laboratories Ltd; Cadila Pharmaceuticals Ltd; Pharmasyntez; Unique Pharmaceutical Laboratories; Torrent Pharmaceuticals and Sun Pharmaceuticals.
Major Russian Investment in India
Major investments from Russia in India are by AFK Sistema in Sistema Shyam Telelink Services; branches by VTB and Sberbank; Joint Ventures automotive company between Russian Kamaz Inc and Vectra Group.
OVERVIEW OF INDIA-RUSSIA ECONOMIC COOPERATION
A. Overview
1. Enhancing trade and economic cooperation between India and Russia is a key priority for the political leadership of both the countries. Bilateral trade amounted to USD 9.51 billion in 2014 wherein Indian exports were USD 3.17 billion and Russian exports were USD 6.34 billion. Indian investments in Russia are estimated to be about USD 7 billion while Russian investments in India total about USD 3 billion.
2. A number of institutionalised mechanisms at governmental and non-governmental levels contribute to the development of economic cooperation between the two countries. While the India Russia Intergovernmental Commission for Trade, Economic, Scientific & Cultural Cooperation (IRIGC-TEC) guides the conduct of economic cooperation at the Governmental level, the Indo-Russian Forum for Trade & Investment has evolved into a platform for facilitating corporate interaction on a regular basis between the two countries.
3. India is also contemplating a FTA/ CECA with the Eurasian Economic Union. The Eurasian Economic Union is one of the important emerging economic blocks, and India is keen to engage more closely with Russia and the CIS countries to further intensify our trade and economic cooperation with this region. On 18 June 2015, India and the Eurasian Economic Union signed a joint statement establishing a Joint Feasibility Study Group (JFSG) for feasibility study on the proposed FTA/CECA between India and the Eurasian Economic Union. The first meeting of the JFSG is scheduled to be held soon.
3. There have been regular bilateral exchanges at the highest levels. The visit of the President Vladimir Putin of the Russian Federation to India for the 15th Indo-Russian Annual Summit on 11 December 2014 was a significant event, around 20 agreements, including 11 agreements related to economic and trade matters were signed during the visit. Prime Minister Narendra Modi visited Ufa, Russian Federation from 8-10 July 2015 and participated in the BRICS and SCO Summit. He also held bilateral talks with President Putin on a broad spectrum of issues including economic and trade cooperation. President of India, Shri Pranab Mukherjee visited Moscow in May 2015 and participated in the 70th Anniversary of the Victory Day celebrations. He also met with President Putin and discussed various issues related to bilateral cooperation. Ms Nirmala Sitharaman, Minister of State for Commerce & Industry led a high level business delegation at the St Petersburg International Economic Forum from 17-19 June 2015.
4. There were other bilateral visits Minister of State for Petroleum & Natural Gas, Comptroller & Auditor General of India, Commerce Secretary and senior officials from Ministry of Commerce, Ministry of Petroleum & Natural Gas, Department of Science & Technology, Department of Chemicals & Fertilisers, Ministry of Health & Family Welfare, Ministry of Finance, Reserve Bank of India, MMTC, Export Promotion Council and APEDA in recent months which have maintained the momentum of our bilateral relations in different areas of cooperation.
B. Trade
5. The bilateral trade during the period January–December 2014 amounted to USD 9.51 billion, with Indian exports amounting to USD 3.17 billion and imports from Russia amounting to USD 6.34 billion. Major items of export from India include pharmaceuticals, miscellaneous manufactures, iron & steel, apparels, tea, coffee and tobacco. Major items of import from Russia include defence equipment, nuclear power equipment, fertilizers, electrical machinery, steels and diamonds.
6. Bilateral trade figures for last ten years are given below:
Indo-Russian S&T Cooperation
India and Russia enjoy a very healthy and long standing bilateral scientific cooperation, which began with signing of the Science and Technology Agreement between India and USSR in 1972, and was further strengthened with conclusion of the Integrated Long Term Programme (ILTP) of Scientific Cooperation at the highest state level by the then Prime Minister of India and General Secretary of Communist Party of Soviet Union in 1987. Considering that Russia was the Successor State of USSR, ILTP was termed as Indo-Russian programme by the ILTP Joint Council in its 5thSession held in Moscow in 1992. A new Agreement on Science & Technology between India and Russia was concluded in 1994 in Moscow. In December 2002 the two governments concluded a Protocol on Protection and Usage of Intellectual Property arising out of bilateral scientific cooperation.
Both India and Russia have been making concerted efforts to strengthen, expand and deepen cooperation in this important area. An Indo-Russian Working Group on Science and Technology (S&TWG) was set up for steering the S&T cooperation between the two countries, which became one of the major Working Groups under the Indo-Russian Inter-Governmental Commission (IRIGC). New programmes to promote cooperation in both basic and applied research and for commercialization of outcome of such research, were mounted based on evaluation and analysis of existing mechanisms. The time tested ties between India and Russia led to Science and Technology cooperation in multifarious areas.
Presently cooperation is being implemented through following institutionalised bilateral level programmes and mechanisms:
1. Working Group on Science & Technology
2. Integrated Long Term Programme (ILTP) of Cooperation in Science and Technology
3. Basic Science Cooperation programme
4. Inter-Academy Exchange Programme
5. Indo-Russian S&T Centre
6. Inter-Ministerial Science, Technology and Innovation Cooperation
1) Indo-Russian Working Group for Cooperation in Science & Technology
Indo-Russian Working Group for Cooperation in Science & Technology (IRWGS&T), one of the major Working Groups under the Indo-Russian Inter-Governmental Commission (IRIGC), was set up in 1993.Six Working Subgroups have been set up under this Working Group which decide and implement the collaborative research projects. These are on
2) Integrated Long Term Programme (ILTP) of Cooperation in Science & Technology
Integrated Long Term Programme (ILTP) of cooperation in Science & Technology is the biggest and most exhaustive scientific collaboration India has ever entered into with another country. The programme was launched with conclusion of the Agreement signed between Prime Minister of India and General Secretary of Communist Party of Soviet Union in 1987. The ILTP, the flagship mechanism for S&T cooperation was renewed with a mandate to promote innovation during the Joint Summit meeting held in December 2010 at New Delhi.
The programme facilitates bilateral cooperation between the scientific communities of two countries by way of joint research projects, bilateral workshops/seminar, focused exploratory visits of scientists, visit of thematic scientific and composite (scientific and industrial) delegations in the identified priority area of basic (Mathematics, Theoretical and Applied Mechanics, Earth Sciences, Physics & Astrophysics, Ecology and Environment, Chemical Sciences, and Life Sciences) and applied (Biotechnology and Immunology, Material Science and Technology, Laser Science & Technology, Catalysis, Space Science & Technology, Accelerators and their Application, Hydrology, Computers & Electronics, Biomedical Science & Technology, Oceanology and Oceanic Resources, Engineering Sciences) sciences. In addition, ILTP Fellowships are provided to the young and experienced Russian researchers to work in Indian laboratories and industrial units. ILTP is now equipped to catalyze technology transfer from the Russian scientific and production institutes to Indian industry.
Each identified area has an area coordinator from India and Russia who make recommendations on support to the joint projects. The Department of Science & Technology (DST), GOI and Russian Ministry for Education and Science (RMES) through with the Russian Academy of Sciences (RAS), the Indian and Russian coordinating agencies receive proposals for all activities round the year which are reviewed by the two sides independently. Based on the independent evaluation, joint evaluation by the area coordinators (especially in case of research projects) the Joint Council (JC), the governing body, co-chaired by Dr T Ramasami, Secretary, Department of Science and Technology, GOI from India and Acad Alexander Olegovich Gliko, Secretary Earth Sciences, RMES and Director RAS Institute of Physics of Earth from Russia meets almost annually alternately in India and Russia to take decision on support of the proposals.
The programme has since resulted in development of new knowledge, products, processes, designs and facilities and setting up of eight Joint Centres of excellence through implementation of over 500 joint projects, 110 joint workshops / seminars, over 3500 exchange visits, more than 1500 joint publications and 10,000 stable scientific contacts.
ILTP Centers of Excellence
Under this programme eightjoint Indo- Russian centers have been established to pursue the concerted areas where large interactive research work progresses. Among the technology export capable countries, India is placed better in some areas such as technology licensing, number of scientists and engineers, and science and mathematical education levels. It is hoped that both the countries will resolve and take steps to benefit by industrial realization of high technologies and commercialization of products developed by joint research.
Department of Science & Technology (DST), GOI and Russian Foundation for Basic Research (RFBR) in 2007 signed a MoU for supporting joint research projects and bilateral expert meetings / seminars in India and Russia in the areas of Basic Sciences. The two sides annually review the priority areas. The current areas include Mathematics, Mechanics and Informatics; Physics and Astronomy; Chemistry; Biology and Medical Sciences; Earth Sciences; Telecommunications and Computer Sciences; Fundamental of Engineering Sciences.
DST and RFBR annually invite proposals for initiative joint research projects through a joint call. Each project receives annual funding equivalent to US$ 20,000 from each side, (about Rs 9,00,000 from DST for the Indian partner and about Rbls. 5,00,000/- from RFBR for the Russian partner) towards exchange visits, consumables and other research expenses.
Upto July 2013 about 133 joint projects were supported in the areas of Physics, Chemistry, Mathematics, Earth Sciences, Life & Biological Sciences, Engineering Sciences and Telecommunications have since been supported. Of these 88 projects have competed successfully and 85 of the completed projects have resulted in 1161 joint publications, giving an average of 8 papers per project. At least in 91 publications Indian scientists were the first author. Currently around 46 joint R&D projects are under implementation (as on Dec 2013).
4) Inter-Academy Exchange Programme
This cooperation was initiated in 1970 through an agreement signed between the erstwhile USSR Academy of Sciences and the Indian National Science Academy (INSA). An inter-Academy agreement between INSA and the Russian Academy of Sciences (RAS) was concluded in 2001 to facilitate and fund exchange of knowledge and scientists.
5) Indo-Russian S&T Centre for two-way Technology transfer and Commercialization
While continuing to support basic and applied research as well as academic cooperation programmes, scientific cooperation is being focused on translational research and technology development and commercialization. On the initiative of our two governments, an Indo-Russian Science and Technology Centre (IRSTC), with its units both in Moscow and in Delhi, has been set up to promote two-way technology transfer between Russia and India and commercialize innovative technologies developed jointly or independently by Indian and Russian scientists.
The Moscow Branch of the IRSTC, inaugurated on December 15, 2011, is located at the Experimental Design Bureau of Oceanological Engineering (EDBOE), RAS and is being headed by Mr Sergei Y Sukonkin as its Director General who is also the Director of the EDBOE. The Delhi-NCR Branch of the IRSTC was inaugurated on April 25, 2012 and is being headed by Dr G Sundararajan, Director of the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) and is located in the ARCI premises in Gurgaon, near Delhi.
The two units work in close coordination to enable technology transfer and intensify interactions between Indian and Russian scientific / industrial institutions. They identify partnership projects through thematic exploratory visits and interactive thematic meetings. Technology partnership proposals seeking and / or offering technology, may be sent to the Centre for networking with suitable partners in India and in Russia, to Dr SV Joshi, Executive Director of the Indian unit ( svjoshi@arci.res.in) and Ms L.I. Kornaukhova, Deputy General of the Russian unit ( rintcmos@gmail.com). A copy of the proposal may be sent to Dr Rama Swami Bansal, Counsellor, S&T Wing of the Embassy of India ( csnt@indianembassy.ru) for facilitation.
6) Inter-Ministerial Science, Technology and Innovation Cooperation
To strengthen S&T cooperation at federal level a Memorandum of Cooperation in Science, Technology and Innovation between Ministry of Science & Technology, GOI and the Ministry of Education and Science (RMES) of Russia was signed on Dec 24, 2012 during the Summit meeting at New Delhi. The Memorandum provides for implementation of cooperation through joint programs or projects facilitating social and economic developments of the two countries through separate cooperation arrangements between RMES and Indian agencies.
For implementation of the Memorandum, a Programme of Cooperation (POC) between DST of India and the Russian Ministry of Education & Science (RMES) and between DBT of India and RMES for the period 2014-2017 to deepen cooperation in the field of innovation and S&T, and in the field of biotechnology, respectively were signed during the 14th Session of the India-Russia Annual Summit co-chaired by the Prime Minister of India and the President of the Russian Federation held at Moscow on Oct 21, 2013. These POCs would support Indo-Russian R&D projects with potential for technology development and generation of new intellectual property. The joint R&D proposals would be invited in the identified priority areas through joint calls that are announced in November/ December every year.
Several new initiatives and projects have recently been launched to enhance and deepen sector-specific cooperation. Some such indicative programmes are on a) Fly Ash Utilization and its Safe Management: Protocol of Intentions between Interregional Association "Siberian Accord" Siberian Federal District, the Russian Federation and DST for cooperation on fly ash utilization and safe management was signed in 2011, as a result of this cooperation a Working Group has been set up in Siberia on issues concerning setting up of the ash-and-slag waste management system in the constituent entities of Siberian Federal District; and b) Standards and Conformity Assessments: Memorandum of Understanding between Bureau of Indian Standards and Russian Federal Agency on Technical Regulation & Metrology (GOST-R) to facilitate closer technical cooperation for cooperation in field of standardization through exchange of information, practices and expertise was signed during the 14th Session of the India-Russia Annual Summit co-chaired by the Prime Minister of India and the President of the Russian Federation held at Moscow on Oct 21, 2013, this cooperation would have beneficial effects for trade and commerce where standards and conformity assessments form an integral basis for transactions.
Nuclear Deals
Construction of the Kudankulam Nuclear Power Plant in 2009
On 7 November 2009, India signed a new nuclear deal with Russia apart from the deals that were agreed upon by the two countries earlier.[89] India and Russia are in discussion for construction of two more nuclear power units at Kudankulam. Two units of the Kudankulam Nuclear Power Plant are already operational. During Russian president Vladimir Putin's visit to India for the 13th annual summit, a co-operative civilian nuclear energy road map was agreed to. Running until 2030, sixteen to eighteen new reactors will be constructed, with installed capacity of 1,000 MW each. A 1,000 MW reactor costs around $2.5 billion so the deal may touch $45 billion in worth
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Bilateral Relations: India-Russia
India–Russia relations - Wikipedia, the free encyclopedia
Time to Revitalise a Flagging India-Russia Partnership -
Will the Pakistan-Russia military exercise make New Delhi-Moscow ties sour? - Firstpost
Relations with India have always been and I am sure will be one of the most important foreign policy priorities of our country. Our mutual ties of friendship are filled with sympathy, and trust, and openness. And we must say frankly that they were never overshadowed by disagreements or conflict. This understanding - this is indeed the common heritage of our peoples. It is valued and cherished in our country, in Russia, and in India. And we are rightfully proud of so close, so close relations between our countries.
— Dmitry Medvedev, about relations with India
India’s rise has changed the nature of its relationships with other major players in the Asia-Pacific region. In response, regional states and great powers have moved to “engage” India. But what does “engagement” involve? And which “engagement strategies” – diplomatic, military, economic or public – have worked and which have not? Finally, what do the “engagement of India” tell us about India’s place in world politics and the best means by which it and others can manage its rise?
Indo-Russian relations refer to the bilateral relations between the Republic of India and the Russian Federation. During the Cold War, India and the Soviet Union (USSR) enjoyed a strong strategic, military, economic and diplomatic relationship. After the collapse of the USSR, Russia inherited the close relationship with India, even as India improved its relations with the West after the end of the Cold War.
Traditionally, the Indo-Russian strategic partnership has been built on five major components: politics, defence, civil nuclear energy,anti-terrorism co-operation and space.These five major components were highlighted in a speech given by former Indian Foreign Secretary Ranjan Mathai in Russia. However, in recent years a sixth component, economic, has grown in importance with both countries setting a target for US$30 billion in bilateral trade by 2025.In order to facilitate this target both countries are looking to develop a free trade agreement. Bilateral trade between both countries in 2012 grew by over 24%.
The powerful IRIGC is the main body that conducts affairs at the governmental level between both countries. Both countries are members of many international bodies where they jointly collaborate closely on matters of shared national interest. Important examples include the UN, BRICS, G20 and SCO where India has observer status and has been asked by Russia to become a full member.Russia has stated publicly that it supports India receiving a permanent seat on the United Nations Security Council. In addition, Russia has expressed interest in joining SAARC with observer status in which India is a founding member.
India is the second largest market for the Russian defence industry. In 2004, more than 70% of the Indian Military's hardware came from Russia, making Russia the chief supplier of defence equipment. India has an embassy in Moscow and two consulates-general (in Saint Petersburg and Vladivostok). Russia has an embassy in New Delhi and four consulates-general (in Chennai, Hyderabad,Kolkata, Mumbai).
According to a 2014 BBC World Service Poll, 45% of Russians view India positively, with only 9% expressing a negative vie
Changing Geopolitical Dynamics
- Russia is upset that its position of primacy in defence supplies to India has been usurped by the US
- Rapid decline in international energy prices has pushed Russia into a close relationship with China
- As with China, there is little meeting ground between strategic interests of Russia and Pakistan
- India and Russia have identical positions on most regional and international issues
- Internationally and regionally, Russia and China will continue to be strategic competitors and adversaries
The last decade and a half has witnessed remarkable strengthening of relations between India and USA across a range of areas including political, strategic, defence, energy and others. The same period has seen a significant decline in relations between Russia and the US especially through imposition of far-reaching sanctions since last year over the Ukraine crisis.
This coupled with the rapid decline in international energy prices, export of which is one of the largest components of foreign exchange earnings by Russia, has pushed it into a close relationship with China. Unanticipated fallout of these developments is that China has emerged as the stronger and Russia the subordinate partner in this relationship.
In substantive terms, relations between India and Russia have also lost some of their sheen as Russia considers its position as the exclusive supplier of defence equipment has been compromised with minimal fresh orders coming its way. It is upset that its position of primacy in defence supplies has been usurped by the United States.As with China, there is little meeting ground between strategic interests of Russia and Pakistan. This is particularly evident in the rapid developments in Afghanistan. Taliban attacks on Afghan assets and people are growing in frequency and intensity. This assists the rise of regional terrorist groups. This makes the situation dangerous for Russia as it is the guarantor of security in the Central Asian region.
Indo-Soviet Treaty of Friendship and Cooperation
The Indo–Soviet Treaty of Peace, Friendship and Cooperation was a treaty signed between India and the Soviet Union in August 1971 that specified mutual strategic cooperation. The treaty was a significant deviation from India's previous position of non-alignmentin the Cold War and in the prelude to the Bangladesh war, it was a key development in a situation of increasing Sino-American ties and American pressure.The treaty was later adopted to the Indo-Bangladesh Treaty of Friendship and cooperation in 1972.
India's relation to Soviet Union initially after the former's independence was ambivalent, guided by Nehru's decision to remain non-aligned, and his government's active part in theCommonwealth of Nations. However, in February 1954, the U.S. administration of President Dwight D. Eisenhower announced the decision to provide arms to Pakistan, followed a month later by Pakistan joining the SEATO and subsequently the CENTO. These agreements assured Pakistan the supply of sophisticated military hardware and economic aid.
But todayhe developing situation alarmed India, which had uncomfortable relations with Pakistan. Since Pakistan also was near the Soviet Union, it also provided Moscow with the necessity as well as the opportunity to develop its relations with India. India's status as a leader of the Non-aligned Movement would also allow the USSR to bolster Soviet policy in the Third World. India and the USSR therefore pursued similar policies based on common security threat born out of the US interests in Pakistan. It was in this context that India and Soviet Union exchanged military Attaches.[4] Although Indo-Soviet cooperation had begun, the investment of soviet-military aid to India only begun in the context of deteriorating Sino-Soviet and Sino-Indian relations. Following the 1962 Sino-Indian war, the Sino-Pakistani axis was also an impetus for growing cooperation between India and the Soviet Union.
India-Russia Defence Cooperation
Defence cooperation is an important pillar of the India-Russia strategic partnership. It is guided by the Programme for Military Technical Cooperation signed between the two countries which is valid, at present till 2020. It enshrines the interest of the two governments to further develop and strengthen the military and technical cooperation in the sphere of research and development, production and after sales support of armament systems and various military equipment. The two sides also have periodic exchanges of armed forces personnel and military exercises.
India and Russia have an institutionalized structure to oversee the complete range of issues of military technical cooperation. The India-Russia Inter-Governmental Commission on Military Technical Cooperation (IRIGC-MTC), set up in 2000, is at the apex of this structure. The two Defence Ministers meet annually, alternately in Russia and India, to discuss and review the status of ongoing projects and other issues of military technical cooperation. There are two Working Groups and seven Sub-Groups under the IRIGC-MTC, which review and discuss an array of military technical issues. In 2008, a high level committee called the High Level Monitoring Committee (HLMC) was set up with Defence Secretary from the Ministry of Defence of the Republic of India and Director of Federal Service for Military Technical Cooperation (FSMTC) from the Russian Federation as its co-chairs.
Bilateral projects currently underway include indigenous production of T-90 tanks and Su-30-MKI aircraft, supply of MiG-29-K aircraft and Kamov-31 and Mi-17 helicopters, upgrade of MiG-29 aircraft and supply of Multi-Barrel Rocket Launcher Smerch.
Over the years, cooperation in the military technical sphere has evolved from a purely buyer-seller relationship to joint research, design development and production of state of the art military platforms. Production of the Brahmos cruise missile is an example of this trend. The two countries are also engaged in joint design and development of the Fifth Generation Fighter Aircraft and Multi-Role Transport Aircraft.
Joint exercises between the two Armed Forces are held under the title "INDRA". In the year 2014, Joint exercises of Army, Navy and the Air force were conducted. Joint exercises for the year 2015 for all the three services are under consideration.
India and Russia have several major joint military programmes including:
- BrahMos cruise missile programme
- 5th generation fighter jet programme
- Sukhoi Su-30MKI programme (230+ to be built by Hindustan Aeronautics)
- Ilyushin/HAL Tactical Transport Aircraft
- Kamov Ka-226 200 to be made in India under the Make in India initiative.
- T-90S Bhishma with over 1000 to be built in India
- Akula-II nuclear submarine (2 to be leased with an option to buy when the lease expires)
- INS Vikramaditya aircraft carrier programme
- Tu-22M3 bombers (4 ordered)
- US$900 million upgrade of MiG-29
- Mil Mi-17 (80 ordered)
- Ilyushin Il-76 Candid (6 ordered to fit Israeli Phalcon radar)
- The Farkhor Air Base in Tajikistan is currently jointly operated by Indian Air Force and Tajikistan Air Force.
Statistics for India’s Trade with Russian Federation
INDIA-RUSSIA TRADE STATISTICS
Major Indian investment in Russia
ONGC Videsh Ltd. in Sakhalin-I Project (US $ 2.2 bn); Imperial Energy (US $ 2.1 bn); Commercial Bank of India Ltd. (JV of SBI and Canara Bank); TATA Motors for planned assembly of small capacity lorries and buses; SUN Group- energy and real estate; Carborandum Universal – production of abrasives at the Volzhsky Abrasive Work in Volgograd; Tata Tea; Woodland Shoes; De Core; Choron Diamonds; L&T; Universal Food technologies (J.V. Gokul); Pharma companies such as Dr. Reddy’s Laboratories Ltd; Cadila Pharmaceuticals Ltd; Pharmasyntez; Unique Pharmaceutical Laboratories; Torrent Pharmaceuticals and Sun Pharmaceuticals.
Major Russian Investment in India
Major investments from Russia in India are by AFK Sistema in Sistema Shyam Telelink Services; branches by VTB and Sberbank; Joint Ventures automotive company between Russian Kamaz Inc and Vectra Group.
OVERVIEW OF INDIA-RUSSIA ECONOMIC COOPERATION
A. Overview
1. Enhancing trade and economic cooperation between India and Russia is a key priority for the political leadership of both the countries. Bilateral trade amounted to USD 9.51 billion in 2014 wherein Indian exports were USD 3.17 billion and Russian exports were USD 6.34 billion. Indian investments in Russia are estimated to be about USD 7 billion while Russian investments in India total about USD 3 billion.
2. A number of institutionalised mechanisms at governmental and non-governmental levels contribute to the development of economic cooperation between the two countries. While the India Russia Intergovernmental Commission for Trade, Economic, Scientific & Cultural Cooperation (IRIGC-TEC) guides the conduct of economic cooperation at the Governmental level, the Indo-Russian Forum for Trade & Investment has evolved into a platform for facilitating corporate interaction on a regular basis between the two countries.
3. India is also contemplating a FTA/ CECA with the Eurasian Economic Union. The Eurasian Economic Union is one of the important emerging economic blocks, and India is keen to engage more closely with Russia and the CIS countries to further intensify our trade and economic cooperation with this region. On 18 June 2015, India and the Eurasian Economic Union signed a joint statement establishing a Joint Feasibility Study Group (JFSG) for feasibility study on the proposed FTA/CECA between India and the Eurasian Economic Union. The first meeting of the JFSG is scheduled to be held soon.
3. There have been regular bilateral exchanges at the highest levels. The visit of the President Vladimir Putin of the Russian Federation to India for the 15th Indo-Russian Annual Summit on 11 December 2014 was a significant event, around 20 agreements, including 11 agreements related to economic and trade matters were signed during the visit. Prime Minister Narendra Modi visited Ufa, Russian Federation from 8-10 July 2015 and participated in the BRICS and SCO Summit. He also held bilateral talks with President Putin on a broad spectrum of issues including economic and trade cooperation. President of India, Shri Pranab Mukherjee visited Moscow in May 2015 and participated in the 70th Anniversary of the Victory Day celebrations. He also met with President Putin and discussed various issues related to bilateral cooperation. Ms Nirmala Sitharaman, Minister of State for Commerce & Industry led a high level business delegation at the St Petersburg International Economic Forum from 17-19 June 2015.
4. There were other bilateral visits Minister of State for Petroleum & Natural Gas, Comptroller & Auditor General of India, Commerce Secretary and senior officials from Ministry of Commerce, Ministry of Petroleum & Natural Gas, Department of Science & Technology, Department of Chemicals & Fertilisers, Ministry of Health & Family Welfare, Ministry of Finance, Reserve Bank of India, MMTC, Export Promotion Council and APEDA in recent months which have maintained the momentum of our bilateral relations in different areas of cooperation.
B. Trade
5. The bilateral trade during the period January–December 2014 amounted to USD 9.51 billion, with Indian exports amounting to USD 3.17 billion and imports from Russia amounting to USD 6.34 billion. Major items of export from India include pharmaceuticals, miscellaneous manufactures, iron & steel, apparels, tea, coffee and tobacco. Major items of import from Russia include defence equipment, nuclear power equipment, fertilizers, electrical machinery, steels and diamonds.
6. Bilateral trade figures for last ten years are given below:
Indo-Russian S&T Cooperation
Both India and Russia have been making concerted efforts to strengthen, expand and deepen cooperation in this important area. An Indo-Russian Working Group on Science and Technology (S&TWG) was set up for steering the S&T cooperation between the two countries, which became one of the major Working Groups under the Indo-Russian Inter-Governmental Commission (IRIGC). New programmes to promote cooperation in both basic and applied research and for commercialization of outcome of such research, were mounted based on evaluation and analysis of existing mechanisms. The time tested ties between India and Russia led to Science and Technology cooperation in multifarious areas.
Presently cooperation is being implemented through following institutionalised bilateral level programmes and mechanisms:
1. Working Group on Science & Technology
2. Integrated Long Term Programme (ILTP) of Cooperation in Science and Technology
3. Basic Science Cooperation programme
4. Inter-Academy Exchange Programme
5. Indo-Russian S&T Centre
6. Inter-Ministerial Science, Technology and Innovation Cooperation
1) Indo-Russian Working Group for Cooperation in Science & Technology
Indo-Russian Working Group for Cooperation in Science & Technology (IRWGS&T), one of the major Working Groups under the Indo-Russian Inter-Governmental Commission (IRIGC), was set up in 1993.Six Working Subgroups have been set up under this Working Group which decide and implement the collaborative research projects. These are on
- Industrial Realization of High Technologies: Department of Science and Technology, (India) and Ministry of Education and Science (Russia)
- Biotechnology: Department of Biotechnology (India) and RAS Centre of Bioengineering (Russia)
- Medical Sciences: Indian Council of Medical Research (India) and Russian Academy for Medical Sciences through Institute of Immunology (Russia)
- Meteorology: India Meteorology Department (India) and ROSHYDROMET (Russia)
- Metrology, Standards & Certification: Bureau of Indian Standards (India) and GOST-R(Russia)
- Oceanology: National Institute of Oceanography (India) and Russian Ministry of Education and Science (Russia)
2) Integrated Long Term Programme (ILTP) of Cooperation in Science & Technology
Integrated Long Term Programme (ILTP) of cooperation in Science & Technology is the biggest and most exhaustive scientific collaboration India has ever entered into with another country. The programme was launched with conclusion of the Agreement signed between Prime Minister of India and General Secretary of Communist Party of Soviet Union in 1987. The ILTP, the flagship mechanism for S&T cooperation was renewed with a mandate to promote innovation during the Joint Summit meeting held in December 2010 at New Delhi.
The programme facilitates bilateral cooperation between the scientific communities of two countries by way of joint research projects, bilateral workshops/seminar, focused exploratory visits of scientists, visit of thematic scientific and composite (scientific and industrial) delegations in the identified priority area of basic (Mathematics, Theoretical and Applied Mechanics, Earth Sciences, Physics & Astrophysics, Ecology and Environment, Chemical Sciences, and Life Sciences) and applied (Biotechnology and Immunology, Material Science and Technology, Laser Science & Technology, Catalysis, Space Science & Technology, Accelerators and their Application, Hydrology, Computers & Electronics, Biomedical Science & Technology, Oceanology and Oceanic Resources, Engineering Sciences) sciences. In addition, ILTP Fellowships are provided to the young and experienced Russian researchers to work in Indian laboratories and industrial units. ILTP is now equipped to catalyze technology transfer from the Russian scientific and production institutes to Indian industry.
Each identified area has an area coordinator from India and Russia who make recommendations on support to the joint projects. The Department of Science & Technology (DST), GOI and Russian Ministry for Education and Science (RMES) through with the Russian Academy of Sciences (RAS), the Indian and Russian coordinating agencies receive proposals for all activities round the year which are reviewed by the two sides independently. Based on the independent evaluation, joint evaluation by the area coordinators (especially in case of research projects) the Joint Council (JC), the governing body, co-chaired by Dr T Ramasami, Secretary, Department of Science and Technology, GOI from India and Acad Alexander Olegovich Gliko, Secretary Earth Sciences, RMES and Director RAS Institute of Physics of Earth from Russia meets almost annually alternately in India and Russia to take decision on support of the proposals.
The programme has since resulted in development of new knowledge, products, processes, designs and facilities and setting up of eight Joint Centres of excellence through implementation of over 500 joint projects, 110 joint workshops / seminars, over 3500 exchange visits, more than 1500 joint publications and 10,000 stable scientific contacts.
ILTP Centers of Excellence
Under this programme eightjoint Indo- Russian centers have been established to pursue the concerted areas where large interactive research work progresses. Among the technology export capable countries, India is placed better in some areas such as technology licensing, number of scientists and engineers, and science and mathematical education levels. It is hoped that both the countries will resolve and take steps to benefit by industrial realization of high technologies and commercialization of products developed by joint research.
- Advanced Research Centre for Powder Metallurgy and New Materials (Hyderabad): Setting up of Advanced Research Centre for Powder Metallurgy and New Materials at Hyderabad is a proud example of accomplishments of ILTP. Presently, the Centre is operational with thrust on three major areas, namely, Powder Metallurgy; Surface Engineering and Ceramic Materials. This is a unique example where scientists and technologists work together for joint R&D and transfer of technologies to industry.
- Polio & other Vaccine Manufacturing (Bulandshahr) Facility: Another important accomplishment of the programme has emerged in the form of polio vaccine production facility, BIBCOL (Bharat Immunological and Biologicals Corporation Limited) at Bulandshahr. This Plant with a capacity of 100 million doses of polio vaccine annually has been receiving continuous help and inspiration from Russia.
- Indo-Russian Centre for Advanced Computing Research (Moscow): Setting up of Indo-Russian Centre for Advanced Computing Research in Moscow has been another important milestone of this programme. The parallel computing system PARAM 10000, designed and developed by Centre for Development of Advanced Computing (C-DAC) has been installed at the Indo-Russian Centre for Advanced Computing Research. Initially, the system is of 12.8 GFLOPS peak performance which would be subsequently upgraded after the multidisciplinary applications are optimized.
- Indo-Russian Centre for Biotechnology (Allahabad): This is another addition to the list of Centers of excellence created under ILTP. The agreement for establishment of this Centre was formally concluded on 5th November 2001 in Moscow during the visit of the Indian Prime Minister to Russia between the Department of Science & Technology on the Indian side and the Russian Academy of Sciences on the Russian side
- Indo-Russian Centre for Gas Hydrates Studies (Chennai): The agreement for establishment of this Centre was formally concluded during the visit of Indian Prime Minister to Russia in November 2003 between the department of Science & Technology on the Indian side and the Russian Academy of Sciences on the Russian side. The Centre was inaugurated at National Institute of Ocean Technology, Chennai on 12th March 2003.
- Indo-Russian Centre for Earthquake Research (New Delhi): It has been established at New Delhi. Several joint R&D projects are being coordinated by the Centre.
- Russian Indian Centre on Ayurvedic Research (Moscow): This Centre was established on 1st October 2004 at Moscow. Genotype-phenotype studies on Prakriti and comparison of Indian and Russian population are being presently pursued.
- Indo-Russian Centre for Biomedical Technology (Thiruvananthapuram): It has been established at Thiruvananthapuram in January 2008. Biomedical equipment are being identified for further joint development.
Department of Science & Technology (DST), GOI and Russian Foundation for Basic Research (RFBR) in 2007 signed a MoU for supporting joint research projects and bilateral expert meetings / seminars in India and Russia in the areas of Basic Sciences. The two sides annually review the priority areas. The current areas include Mathematics, Mechanics and Informatics; Physics and Astronomy; Chemistry; Biology and Medical Sciences; Earth Sciences; Telecommunications and Computer Sciences; Fundamental of Engineering Sciences.
DST and RFBR annually invite proposals for initiative joint research projects through a joint call. Each project receives annual funding equivalent to US$ 20,000 from each side, (about Rs 9,00,000 from DST for the Indian partner and about Rbls. 5,00,000/- from RFBR for the Russian partner) towards exchange visits, consumables and other research expenses.
Upto July 2013 about 133 joint projects were supported in the areas of Physics, Chemistry, Mathematics, Earth Sciences, Life & Biological Sciences, Engineering Sciences and Telecommunications have since been supported. Of these 88 projects have competed successfully and 85 of the completed projects have resulted in 1161 joint publications, giving an average of 8 papers per project. At least in 91 publications Indian scientists were the first author. Currently around 46 joint R&D projects are under implementation (as on Dec 2013).
4) Inter-Academy Exchange Programme
This cooperation was initiated in 1970 through an agreement signed between the erstwhile USSR Academy of Sciences and the Indian National Science Academy (INSA). An inter-Academy agreement between INSA and the Russian Academy of Sciences (RAS) was concluded in 2001 to facilitate and fund exchange of knowledge and scientists.
5) Indo-Russian S&T Centre for two-way Technology transfer and Commercialization
While continuing to support basic and applied research as well as academic cooperation programmes, scientific cooperation is being focused on translational research and technology development and commercialization. On the initiative of our two governments, an Indo-Russian Science and Technology Centre (IRSTC), with its units both in Moscow and in Delhi, has been set up to promote two-way technology transfer between Russia and India and commercialize innovative technologies developed jointly or independently by Indian and Russian scientists.
The Moscow Branch of the IRSTC, inaugurated on December 15, 2011, is located at the Experimental Design Bureau of Oceanological Engineering (EDBOE), RAS and is being headed by Mr Sergei Y Sukonkin as its Director General who is also the Director of the EDBOE. The Delhi-NCR Branch of the IRSTC was inaugurated on April 25, 2012 and is being headed by Dr G Sundararajan, Director of the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) and is located in the ARCI premises in Gurgaon, near Delhi.
The two units work in close coordination to enable technology transfer and intensify interactions between Indian and Russian scientific / industrial institutions. They identify partnership projects through thematic exploratory visits and interactive thematic meetings. Technology partnership proposals seeking and / or offering technology, may be sent to the Centre for networking with suitable partners in India and in Russia, to Dr SV Joshi, Executive Director of the Indian unit ( svjoshi@arci.res.in) and Ms L.I. Kornaukhova, Deputy General of the Russian unit ( rintcmos@gmail.com). A copy of the proposal may be sent to Dr Rama Swami Bansal, Counsellor, S&T Wing of the Embassy of India ( csnt@indianembassy.ru) for facilitation.
6) Inter-Ministerial Science, Technology and Innovation Cooperation
To strengthen S&T cooperation at federal level a Memorandum of Cooperation in Science, Technology and Innovation between Ministry of Science & Technology, GOI and the Ministry of Education and Science (RMES) of Russia was signed on Dec 24, 2012 during the Summit meeting at New Delhi. The Memorandum provides for implementation of cooperation through joint programs or projects facilitating social and economic developments of the two countries through separate cooperation arrangements between RMES and Indian agencies.
For implementation of the Memorandum, a Programme of Cooperation (POC) between DST of India and the Russian Ministry of Education & Science (RMES) and between DBT of India and RMES for the period 2014-2017 to deepen cooperation in the field of innovation and S&T, and in the field of biotechnology, respectively were signed during the 14th Session of the India-Russia Annual Summit co-chaired by the Prime Minister of India and the President of the Russian Federation held at Moscow on Oct 21, 2013. These POCs would support Indo-Russian R&D projects with potential for technology development and generation of new intellectual property. The joint R&D proposals would be invited in the identified priority areas through joint calls that are announced in November/ December every year.
Several new initiatives and projects have recently been launched to enhance and deepen sector-specific cooperation. Some such indicative programmes are on a) Fly Ash Utilization and its Safe Management: Protocol of Intentions between Interregional Association "Siberian Accord" Siberian Federal District, the Russian Federation and DST for cooperation on fly ash utilization and safe management was signed in 2011, as a result of this cooperation a Working Group has been set up in Siberia on issues concerning setting up of the ash-and-slag waste management system in the constituent entities of Siberian Federal District; and b) Standards and Conformity Assessments: Memorandum of Understanding between Bureau of Indian Standards and Russian Federal Agency on Technical Regulation & Metrology (GOST-R) to facilitate closer technical cooperation for cooperation in field of standardization through exchange of information, practices and expertise was signed during the 14th Session of the India-Russia Annual Summit co-chaired by the Prime Minister of India and the President of the Russian Federation held at Moscow on Oct 21, 2013, this cooperation would have beneficial effects for trade and commerce where standards and conformity assessments form an integral basis for transactions.
Nuclear Deals
Construction of the Kudankulam Nuclear Power Plant in 2009
On 7 November 2009, India signed a new nuclear deal with Russia apart from the deals that were agreed upon by the two countries earlier.[89] India and Russia are in discussion for construction of two more nuclear power units at Kudankulam. Two units of the Kudankulam Nuclear Power Plant are already operational. During Russian president Vladimir Putin's visit to India for the 13th annual summit, a co-operative civilian nuclear energy road map was agreed to. Running until 2030, sixteen to eighteen new reactors will be constructed, with installed capacity of 1,000 MW each. A 1,000 MW reactor costs around $2.5 billion so the deal may touch $45 billion in worth
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Source :
Bilateral Relations: India-Russia
India–Russia relations - Wikipedia, the free encyclopedia
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