BILATERAL

RELATIONS
BETWEEN INDIA
AND RUSSIA
INTRODUCTIO
N
 Relations between India and Russia are rooted in history ,
mutual trust and mutually beneficial cooperation. This is a
strategic partnership that has withstood the test of time , and
which enjoys a support of the people pf both countries.
➢ Diplomatic relations between India and Russia began
even before independence that is on 13 April 1947 .
➢ The Soviet Union invested in many heavy machine
industries , mining , etc.

3
During the 2nd Five
Treaty of Peace In the nineties ,
Year Plan of This was a
and Friendship India extended
India ,16 heavy blueprint for
was signed massive loans to
industries were strengthening
between India and in the form of food
set up in which 8 global peace and
Russia in the year credit and
were with the help security
1971. technical credit.
of Soviet Union.

4
 After the dissolution of
After the signing of new
USSR(Union of Soviet
treaty and friendship
Socialist A Bilateral Military-
cooperation , meetings So far 19 annual
Republics),India and Technical Cooperation
between PM of India summits have been held
Russia entered into a agreement was signed
and President of Russia since 2000.
new treaty of Friendship in 1994.
have been regularly
and cooperation in
held.
January 1993.

5
 Inter-Governmental
commissions

Cultural
Trade Economic Scientific Technological
Cooperation

This commission is co-chaired by External Affairs minister

of India and deputy Prime Minister of Russia.

6
 TOPICS DISCUSSED

Multilateral Organizations and Connectivity Projects

Trade and Economic Relations

Bilateral Investment

7
 Multilateral
Organizations
and Connectivity
Projects
 Multilateral Organizations and
Connectivity Projects
Annual summit between India and Russia

BRICS

SCO

9
 ANNUAL SUMMIT

➢ The Annual Summit meeting between the Prime Minister of India and the President of the
Russian Federation is the highest institutionalized dialogue mechanism in the strategic
partnership between India and Russia.
➢ So far 20 Annual Summit meetings have taken place alternatively in India and Russia.
Prime Minister visited Vladivostok from September 4-5, 2019 for the 20th India-Russia
Bilateral Summit and as the Guest of Honor for the 5th Eastern Economic Summit.
➢ 14 MoUs in the fields of Trade and Investments, defense cooperation, Road Transport
and cooperation in oil and gas sectors were signed during the visit of Prime Minister. He
also met the Prime Minister of Japan, the President of Mongolia and the Prime Minister of
Malaysia on the sidelines and addressed the Eastern Economic Forum. President Putin
visited New Delhi from October 04-05, 2018, for the 19th India-Russia Annual Bilateral
Summit..

10
India – Russia ties have successfully coped with the
turbulent realities and they will not be susceptible to outside
influences.

The leaders agreed to facilitate exploring the impressive

potential of the strategic partnership.

They highly appreciated the work of the India-Russia IRIGC

which ensures progressive development of bilateral
cooperation in various areas.

11
 ANNUAL SUMMIT-2019

➢ Prime Minister of the Republic of India H.E. Narendra Modi paid an official visit to the
Russian Federation on September4-5, 2019 on the invitation of President of the
Russian Federation H.E. Mr Vladimir Putin. The 20th India – Russia Annual Summit was
held in Vladivostok. H.E. Mr Narendra Modi also participated in the 5th Eastern
Economic Forum as the Chief Guest.
➢ At the jubilee 20th Annual Summit, both leaders noted progressive development of the
Special and Privileged Strategic Partnership between India and Russia. These relations
are unique, confiding and mutually beneficial by nature, encompassing all possible
areas of cooperation.

12
 ANNUAL SUMMIT-2019

• India-Russia ties have successfully coped with the turbulent realities of the
contemporary world. They have never been and will not be susceptible to outside
influence. Development of the entire gamut of India-Russia relations is a foreign policy
priority for both countries. The leaders agreed to facilitate, in all possible ways,
exploring the impressive potential of our strategic partnership to the full,
demonstrating its special and privileged nature which has emerged as an anchor of
stability in a complex international situation.
• Both Sides welcomed intensive cooperation between their parliaments and noted the
importance of interparliamentary interaction as a valuable component of their bilateral
relations. They highlighted the visit of the Chairman of the State Duma to India in
December 2018 and look forward to the visit of the Speaker of the Lok Sabha to Russia
later in 2019.

13
ANNUAL SUMMIT

14
 BRICS
BRICS is the group composed by the five major emerging countries - Brazil,
Russia, India, China and South Africa -, which together represent about 42% of
the population, 23% of GDP, 30% of the territory and 18% of the global trade

Throughout its first decade, BRICS has developed sectorial cooperations in

different areas, such as science and technology, trade promotion, energy, health,
education, innovation and fight against transnational crime. Currently, sectorial
cooperation, which covers more than 30 subject areas, brings important concrete
benefits to the populations of the five countries.

The acronym BRIC was coined by Goldman Sachs in 2001 to indicate the
emerging powers that would be, alongside the United States, the five largest
economies of the world in the 21st century..

15
YEKATERINBURG SUMMIT (2009) The meeting aimed at strengthening the coordination between the four countries on issues
related to the reform of global governance, especially in the economic-financial field (G-20, the International Monetary Fund and
the World Bank)

BRASÍLIA SUMMIT (2010) During the meeting, BRIC leaders signed a cooperation agreement to facilitate the financing of
energy and infrastructure projects. Furthermore, development banks have agreed to study ways to enlarge the granting of credit
among BRIC countries.

SANYA SUMMIT (2011) In the Sanya Declaration, BRICS countries reaffirmed the need of reform of global governance,
including the Security Council. The document also mentions other topics such as: economics and finance; condemnation of
terrorism; encouragement to the use of renewable energy and the peaceful use of nuclear energy.

NEW DELHI (2012) The meeting called for representatives of developing countries to be nominated for the presidency of the
World Bank, reiterating that the heads of the IMF and the World Bank should be appointed through an open, transparent and
merit-based procedure.

16
DURBAN SUMMIT (2013) At the meeting, it was discussed inclusive and sustainable development
and the reform of global governance institutions. 

FORTALEZA SUMMIT (2014) The main outcome of the meeting was the creation of the New Development
Bank (NDB), with the aim of allocating resources for the financing of infrastructure and sustainable
development projects in developing countries. by the five countries, until 2022.

UFA SUMMIT (2015) "BRICS Economic Partnership Strategy", a roadmap for the diversification of trade
and investment between member countries, was approved in this occasion.

GOA SUMMIT (2016) The summit discussed global economic recovery, addressing issues such as fiscal
and social responsibility, NDB institutionalization, investment attraction, counter-terrorism and economic
growth.

XIAMEN SUMMIT (2017) t the meeting, the action plan to encourage innovation cooperation (BRICS Action
Plan for Innovation Cooperation 2017-2020) was signed, as well as the creation of the BRICS Tuberculosis
Research Network.

17
 JOHANNESBURG SUMMIT (2018) At the summit, it was signed the
agreement regarding the establishment of the Regional Office for the
Americas of the New Development Bank, which will located in São
Paulo. In addition, the memorandum of understanding on the Regional
Aviation Partnership was signed.

BRASÍLIA SUMMIT (2019) The annual summit aims to advance

cooperation in the fight against transnational crime, especially
organized crime, money laundering and drug trafficking.

18
ADVANTAGES TO INDIA AND RUSSIA THROUGH BRICS

INDIA: In 2016-17, India also earmarked Rs.1100 crore for cultivation of

pulses, out of Rs. 1700 crore meant for the National Food Security Mission
(NFSM). The BRICS countries have also agreed to establish a BRICS Agriculture
Research Platform (BRICS-ARP), which was proposed by India during the 2015
BRICS Summit held at Ufa in Russia, to promote strategic cooperation in
agriculture among the member states.

RUSSIA:BRICS is an integral part of Russian attempts

to pursue a multi-vector policy that is not reliant solely
on western dominated institutions. Reform of
international monetary and financial system to
facilitate economic growth of Russia.

19
20
 SCO

The Shanghai Cooperation Organization (SCO) is a permanent

intergovernmental international organization.

Proceeding from the Spirit of Shanghai the SCO pursues its

internal policy based on the principles of mutual trust, mutual
benefit, equal rights, consultations, respect for the diversity
of cultures and aspiration towards common development, its
external policy is conducted in accordance with the principles
of non-alignment, non-targeting anyone and openness.

21
 members of the SCO

India Uzbekistan

Kazakhstan Tajikistan

China Pakistan
Kyrgyzstan Russia

22
 SCO’s AIM
moving
making joint towards the
strengthening promoting their efforts establishment
mutual trust and effective to maintain and of a democratic,
neighborliness cooperation ensure peace, fair and rational
among the in politics, trade, security and new
member states the economy stability in the international
region political and
economic order

23
TRADE AND
ECONOMIC
RELATIONS
 INTRODUCTION

➢ India - Russia holds a longstanding and time-tested partnership with

each other.
➢ Since the signing of the Declaration on the India-Russia Strategic
Partnership in October 2000, India-Russia ties have attained a new
phase with greater levels of cooperation in almost all areas of the
bilateral relationship including trade and economy.
➢ Under the Strategic Partnership, several institutionalized dialogue
mechanisms operate to ensure regular interaction and follow up on
cooperation activities

25
Trade Dynamics between
India and Russia

India – Russia Trade has grown

tremendously from USD 1.32 billion in
2001 to USD 10.13 in 2017, wherein India’s
exports to Russia grew from USD 0.84
billion in 2001 to USD 2.14 billion in 2017
whereas India’s imports from Russia grew
from USD 0.48 billion to USD 8 billion
during the same period previous year.

26
Trade Dynamics between
India and Russia

➢ Major items of import from Russia include

pearls, precious and semi-precious stones &
metals, nuclear power equipment, electrical
machinery and equipment, mineral oil &
products, iron & steels, and optical, precision
and surgical equipment.
➢ Major items of export from India include
pharmaceuticals, tea, coffee and tobacco,
machinery and mechanical appliances, organic
chemicals, and electrical machinery and
equipment..

27
 Trade dynamics between India and Russia

➢ The export pattern of India to Russia has undergone a shift during 2010 – 2016.
Though the majority of the exports from India to Russia were consumer goods, its
share has fallen from 58.4% in 2010 to 42.8% in 2016. On the other hand, share
of capital exports from India to Russia has risen from 12% to 21% during the
same period.
➢ Based on WTO’s categorization of products, around 76% of Indian exports to
Russia were industrial products whereas 23% were agricultural products and
remaining 1% were petroleum products during 2016.

28
➢ Based on the state of processing of products,
there has been a significant shift in India’s
import pattern from Russia. India has started
importing more of raw materials compared to
intermediate goods.
➢ The share of intermediate goods fell from 72%
in 2010 to 41% in 2016 commensurating with
a rise in raw materials from 24% to 50%
during the same period.
➢ Based on WTO’s categorization of products,
around 89% of India’s imports from Russia are
in the form of industrial products whereas 5%
were petroleum and agricultural products each.

29
➢  Top 5 import items in India from
Russia during 2018 were:

I. Mineral fuels, mineral oils and

products of their distillation;
bituminous substances; mineral
waxes II. Natural or cultured pearls,
precious or semi-precious stones,
precious metals
III. Nuclear reactors, boilers,
machinery and mechanical
appliances;
parts thereof
IV. Electrical machinery and
equipment and parts thereof
V. Fertilizers

30
➢ Top 5 export items from India to
Russia during 2017-18 were:

I. Pharmaceutical products
II. Electrical machinery and
equipment and parts thereof
III. Nuclear reactors, boilers,
machinery and mechanical
appliances;
parts thereof
IV. Organic chemicals
V. Vehicles other than railway or
tramway rolling-stock, and parts and
accessories

31
32
 Role of non-tariff measures in India – Russia trade
➢ Due to trade barriers in existence between India and Russia, trade cost between India
and Russia is greater than many countries – although the rate is declining.
➢ There are various quantitative restrictions imposed by Russia like export licensing for
export of precious metals, gems, and minerals. Further, various Sanitary and
Phytosanitary measures are imposed by Russia on imports of Meat, fish and products
thereof like stringent guidelines for inspectors regarding the equivalence of veterinary
and sanitary measures.
➢ The issue of non-tariff barriers (NTBs) needs to be addressed to propel India’s export
to Russia .

33
Source: department of commerce.

34
➢ In a holistic view, India-Russia rapport has
been slowly but definitely changing for
better.
➢ Efforts need to be made so that the
relationship is equally beneficial for both
the countries and the fear of lopsided trade
is discarded.
➢ However, the policy of inordinate non-tariff
barriers and exorbitant tariff rates should be
avoided by both the countries to further
expand the trade relationship.

35
 BILATERAL
INVESTMENTS
Russian investment in India in 2017 has reached 18bn USD and India’s total
investment in Russia so far is 13 bn USD. The overall investment target of 30 bn USD
that was set for 2025 has been already crossed.

The cumulative Indian investments in Russia, was about US $ 8 billion for the period
2000-2014, while the cumulative Russian investments in India over the same period
were about US $ 4 billion, mainly in automotive (KAMAZ) and telecommunications
(AFK Sistema) sectors.

In 2015-2017, there was a renewed emphasis on increasing the bilateral investment,

especially in the hydrocarbon sector.

37
Russian company Rosneft acquired ESSAR’s Vadinar refinery in India by
concluding a deal in 2017. This deal was USD 12.9 billion, is one of the
biggest Russian investments in India in recent times.

Other major investments from Russia in India are by AFK Sistema in Sistema
Shyam Telelink Services; planned India- Russia JV for production of titanium
products in Odisha; branches by VTB and Sber bank; Joint Ventures
automotive company between Russian KamazInc and Vectra Group.

Pursuant to the decision taken during the 19th Bilateral Summit, 1st India-
Russia Strategic Economic Dialogue (IRSED) was held in St. Petersburg on
November 26, 2018, led by Vice-Chairman NITI Aayog and Russian Minister
of Economic Development.

38
➢ The Russian Ministry of Economic Development has launched ‘Single window
Service’ in October 2018 to facilitate hassle-free investment by Indian
companies which will help achieve mutual trade and investment target.
Some of the key priority sectors identified for focused interaction include
hydrocarbons, pharmaceuticals, mining, fertilizers, heavy engineering, gems
& jewelry, chemicals, fertilizers and agriculture & food processing industry.
➢ Hydrocarbons is an active area for exploring cooperation between the two
countries. In the second and third quarter of 2016, Indian companies
invested close to US$ 5.5 billion in Russia’s Oil and Gas sector, which
included acquisition of 23.9% stake in Vankorneft and 29.9% in Taas-Yuryakh
by an Indian Consortium of Indian Oil Corporation Limited (IOCL), Indian Oil
Corporation Limited (OIL) and Bharat Petro Resources Limited (BPRL); and
acquisition of 15% and 11% stake by ONGC Videsh Limited (OVL) in
Vankorneft from Rosneft Oil Company of Russia.

39
➢ India and Russia decided to step up industrial cooperation and create new technological
and investment partnership, especially in advanced high-tech areas, with an aim to
increase bilateral trade to $30 billion by 2025.
➢ According to a joint statement issued by the Russian government after 20th India—
Russia Annual Summit, Prime Minister Narendra Modi and President Vladimir Putin also
agreed that the work on promoting mutual settlements of payments in national currencies
will be continued. India-Russia bilateral merchandise trade was about $8.2 billion during
2018-19.
➢ In this context, the statement said they agreed to speed up preparations for signing of the
India-Russia Intergovernmental Agreement on Promotion and Mutual Protection of
Investments. It was also agreed to intensify work for eliminating trade barriers.

40
CONCLUSION
 CONCLUSION

 India would do well to take steps to shore up its relations with Russia to prevent it
from becoming more dependent than it already is on China.
 At the same time, Russia would also benefit from diversifying its relations across
the region, including India, so as to prevent its pivot to Asia becoming a pivot
to China.
 Russia has made it clear that it is not in an alliance relationship with China and
wants to have a multi-vector foreign policy. It remains to be seen how Moscow
plans to translate its policy pronouncement to reality.
 CONCLUSION

 In its post-Cold War avatar, it has been in a particularly weak position in Asia and
does itself no favours by becoming over-dependent on China – raising fears of
becoming a junior partner in the relationship.
 The proposal of President Putin for a ‘more extensive Eurasian partnership
involving the EAEU and China, India, Pakistan and Iran’ should be used by India
to strengthen its presence in Eurasia.
 The main challenge here would be from China’s Belt and Road Initiative that
covers a vast expanse of the region, which Russia has joined and plans to link the
EAEU to it.

 CONCLUSION
 India’s connectivity plans in the region, in the form of INSTC, have been languishing for a long time,
constrained by problems of security issues along the corridor, ‘low economic viability and lack of
financial investment,’ disputes between participant countries and other projects competing with it.

 India and Russia’s relationship cannot flourish on defence and historical linkages alone. With
systemic changes underway in international relations, new dimensions of cooperation need to be
found to build a strong economic and strategic partnership.

 Both India and Russia will have to learn to navigate their relationship amidst challenges emerging
not just from bilateral factors but also regional and global ones, as both countries seek to strengthen
their position at a time of flux in the international order
 MY OPINION

India is Russia’s long-standing and reliable partner. However, the current model of ties has
largely exhausted itself, and cooperation should be taken to a qualitatively new level.

The two countries “need to systematically upgrade the modalities of their cooperation”
through top level ministerial and bureaucratic dialogue at greater frequency rather than
just the annual bilateral summit between the leaders of the two countries, as well as
through the development of a more robust economic and business engagement.

A whole series of systemic barriers that currently impede bilateral relations must be
overcome.

At the same time, the state has the responsibility to initiate and coordinate such
contacts, since developing bilateral relations is ultimately a strategic and political task.
THANK YOU!

Any questions?

46