Bilateral Relations - India/Russia cooperation
Russian President visited New Delhi to attend annual India/Russia summit.The two leaders have already met at BRICS at G20 suumits.Prime minister Modi also introduced Diamond diplomacy to import rough diamonds from Russian diamonds companies to India which is big boost for Russian diamond companies business towards India.Ties with Russia never featured in election campaigns regardless of parties or Governments.The 15th summit between India and Russia created 16 agreements in field of oil and gas,joint production of fighters and helicopeters in India for Make in India campaign by Modi government.Russia President agreed for this and Indian prime minister also did not support for any sanctions against Russia and supported Russian federation very much on diplomatic front also.New Delhi also concerned with Moscow forge defence cooperation with Pakistan.Russians have not only been upset about India's military procurement policy,but have also been unable to digest the US overtaking their weaponry market.Many in Moscow are sulking,seeking retribution by freezing cooperation with India and looking closer Russia-Pakistan ties to compensate the market loss.Whom does India stand for the US or Russia?
The Indian worry stems from Russian failure to meet delivery plans,jacking up costs,refusal to transfer of technology and supply of unreliable spares.It took years to finally deliver INS Vikramaditya.New Delhi is showing growing impatience over Russia's delivery timeframe of two flagship projects,the stealth 5th generation fighter aircraft based on PAK-FA or Sukhoi T-50 and the Multi Role Transport Aircraft-MTA based on II-214.Russia itself is going in for rearmament programme following the tension over Ukraine and the standoff with NATO in Eastern Europe.Moscow is planning to spend $500 billion for the modernisation programme.Hopefull,Moscow and New Delhi will play no balance game against each other.Russian President Putin sent his defence minister to Islamabad before he visits New Delhi.Indian Prime Minister Modi's Make in India campaign and his thrust on attracting US investments in the defence sector worry Russia.The proposed Indo-US defence trade and technology initiative aims not to be transactional but to free India from import dependency while seeking co-production and co-development in weaponry that would boost Indian security and economy.Russia should update the scope of cooperation,especially in high technology area to help itself expand business beyond the Indian market.Moscow has long transferred critical technology to India for both research and production purpose.The SU-30 aircraft and T-90 tanks and the BrahMos missile are made in India under license.
Russian investments had been merely $1 billion in India.Barring a few firms like Systema,Rusal,Severstal,Kamas and others,Moscow has done little to explore India's non defence sector.Of course,firms like Systema went through problems which are finally in the process of resolution.Moscow would unveil some signature investment and joint manufacturing projects to join the Make in India initiative.But to be sure India also mindful about the risk of relying on the US,for it could restrict access to civil-military technologies unless Modi transforms India to become client state like Pakistan.New Delhi can not risk the geostrategic calculations where the US never replace Russia politically and operationally in case of a national crisis.The annual trade between Russia and India trageted to get $20 billion by 2015.Russia's vast technological potentials,its natural resources spanning mammoth territory remain unexplored by India-now filled by Chinese and South Korean comapanies.The Indian oil and gas company ONGC Videsh has made a tardy investment of $6.5 billion in Russia's Sakhalin I and Imperial energy.It is a story of missed opportunity.Indian companies could have entered Russia's known sectors,such as chemicals,Pharmaceuticals,automobiles,telecommunications,infra sectors and reaped dividend.India needs energy and Russia needs to counter sanctions.It is only energy diplomacy that can replace the waning defence business and bring rationality in India-Russia relations.For India,like in the maritime domain,the vast pipeline network-intersecting with growing Sino-Russian,Sino-Pakistani and now Pakistani-Russian partnerships-could adversely impact its interests.
Russia has committed itself to build 12 more nuclear reactors in India by 2035 and cooperate in joint uranium production,nuclear waste disposal.An agreement signed on will enable joint development and implementation of projects like navigation platform and Geographical Information system in India.Russia and India will study the possibilities of building hydrocarbon pipeline system,connecting Russian with India through International North-South Transport Corridor.For bilateral trade,the two countries will encourage payments in national currencies.
Anil Kumar Upadhyaya
New Delhi, 12 of November 2014
