You call it a love affair; I'd like to characterize the relationship as a Strategic Partnership. A love affair has its start and its end. But relations between two countries is a long and interactive process. As it is said, there are no permanent friends and no permanent foes in international relations, but only permanent interests. Relations between India and Russia are permanent because their interests are also permanent. Of course, time changes, we come across new friends or new foes. Both Russia and India want to win over new friends, but not at the expense of trusted and old friends.

But the Indo-Russian relationship is no longer heard in the political discourse?

This is the result of the globalization process. It's not something only about India and Russia. Of course, the name of the US is heard every day, every hour. But it's closely connected to practical solutions to practical problems that exist between India and the international community -- and also between India and the US. The nuclear deal was not just between India and the US. It was a deal between India and the international community, between India and the International Atomic Energy Agency, between India and the Nuclear Suppliers Group (NSG). There's nothing wrong that we don't frequently hear the slogan of 'Hindi-Russi bhai bhai.' It doesn't change the essence of our relationship. The essence is the same: it's difficult and almost impossible to imagine India with some new friends -- but without Russia.

Do the growing Indo-US ties bother Russia?

We are too secure a nation to worry about something that doesn't threaten our national interest. I don't see any threat in the developing Indo-US ties. We have nothing to worry about as long as India's foreign policy remains based on the same principles as before.

But are Indo-US ties growing at the cost of others?

I'm yet to face any encroachment on our ties or an attempt to elbow us out as a supplier of something to India. What's definitely a new phenomenon is the rising competitiveness of the Indian market. Decades earlier, India didn't have too many alternatives except working together with Russia. And Russia worked wholeheartedly with India in building its heavy machinery and its steel industry. The initial stages of the Indian space research was without doubt due to our participation. In the field of military cooperation, India was searching for friends. Only Russia was prepared to build India's military might -- on the basis of government credit, not hard currency that India lacked then. Later, by buying back Indian traditional goods, we also assisted India to get access to international markets. All this became the basis of today's India.

Is it a good thing for Russia that India has so many options today?

It's price and quality that will play an important role in the Indian market. Until now, Russia as a supplier has been enjoying this leading role. Our prices are optimal, and in the military, nuclear and space research fields, this is recognized perfectly well.

India has been looking at sources other than Russia for defence supplies. Will Russia look for other markets -- say, Pakistan?

Even now we have a lot of customers besides India. With India, it's a different story. We have already reached the stage of joint designs, joint production and joint marketing in third countries of military goods and hardware that we have produced together. The best example of this is Brahmos. We are now thinking of Brahmos II. We are also working on the joint production of interceptor fighter aircraft -- fifth generation. With other countries, our relationship is different. As far as I know, this kind of relationship doesn't exist between India and other countries.

Is India's sensitivity the reason why Russia hasn't really looked upon Pakistan as a market?

This isn't at India's behest. Undoubtedly, we have to keep in mind our strategic cooperation with India. We will also have to keep in mind the long and chequered history of our relations with Pakistan, specifically when our forces were in Afghanistan. But we will have to take into account the internal situation in Pakistan. The Americans are worried about the security of the nuclear devices in Pakistan. We don't want to be in the same shoes. We don't want to worry about how our military hardware is exploited by some extremist forces. In any case, from both the economic and strategic point of view, Pakistan isn't a country of our preference. Also, I don't think Pakistan is keen to have well developed relation with us in this field. Let's not forget their very deep and close military ties with the US.

But what about Indo-Russia economic cooperation?

It's a new situation -- our economy is a market economy and India's is a liberalized market economy. For us, it's a very happy thing that due to their cultures and economic policies, both countries are less negatively influenced by the financial crisis. The US is on the other side--it is the origin of the crisis. It's very positive that India is not directly linked with the dollar but with a basket of currencies. This has minimized the impact of the dollar's tragic fall. India takes care of its internal markets very well. Indian economists, though they are supporters of market economy, say that the very existence of public sector has helped us to battle pressure from outside.

Are you worried that the biggest share of India's nuclear and defence market could go to the US because of its key role in breaking the nuclear apartheid for Delhi?

I don't think the US played a key role in this. It had to play a very active role because they were the architects of these sanctions (against India). It is only natural. But without the cooperation between India and Russia to construct nuclear energy plants in Koodamkulam, it would have taken decades to lift these sanctions. The very existence of our cooperation pushed the US towards the dissolution of the sanctions.

So, Russia was a catalyst?

Russia was the only country that supported India, not only in words but in deeds -- for instance, supplying the Tarapore reactor with fuel. The Americans won't find it easy to enter the Indian market, because it did not construct a single plant in the last 25 years. Also, keep in mind the ratio between quality and price. The price that the Americans will ask for is not going to be very low. Without Russia lobbying with other countries, the NSG's decision would have been a little different.

But you are worried, aren't you?

I do not have worries, I deal with situations. Russia will have its own niche and no one will be able to take that away from us. In other areas, we will complete with France and other countries. We are used to it. Our MiGs and the French Mirage competed successfully. The aircraft constructed in Russia is constructed keeping in mind the pilot's convenience. Those of the west require the pilot to adjust to the aircraft.

Is the Gorshkov deal a done deal?

The deal is under review because between the time the contract was signed and now, there's a new economic situation, price-wise. The ongoing review will provide a positive solution that will be acceptable to both sides. I think the Gorshkov deal will be based on a pucca outlook of what India wants from this aircraft carrier.

Is there a timeframe to complete review?

The reassessment requires time and sober approach towards the decision making process. We might see something unique out of this process or something that will be optimum and which will satisfy the medium range needs of the Indian navy. India has to have a ship of this category. We definitely understand the strategic necessity of India to have such a ship. Though India is now planning on building an indigenous carrier and that is why they have ordered for special type of aircrafts that will suit smaller type of aircraft carrier. Because Gorshkov may be supplied with readymade aircrafts. But India needs smaller aircrafts that can get under the deck.

Will the Indo-Russia N-agreement be signed during President Medvedev's visit?

I'm sure it will be signed.

Will it also cover cooperation on enrichment and reprocessing?

I am not sure. If India needs something, we are willing to look into it. and decide. We are for full-fledged cooperation with India. Unlike other countries, we don't wish to impose any kind of limitation on India. It has an immaculate record on non-proliferation. We have nothing to worry about. Our decision to help Tarapore with nuclear fuel was proof of our preparedness to help India out from any difficult situation.