Economic Agenda Set To Dominate India-Russia Summit

Defence relations have been the bed-rock of India-Russia ties but this year’s summit shifts the focus to the economy. There will be discussions around defence equipment, but no major announcements expected. Despite warm political relations and excellent government to government co-operation,  the economic ties, especially private investments remain the weakest link. 

There was a buzz around technology and some forward movement is expected. While all issues will be on the table, the central agenda is boosting two-way trade and finding ways to narrow India’s widening trade deficit with Moscow. A number of agreements will be signed. 

“We know our Indian friends are concerned about imbalance in trade. We want to buy more from India. We are looking for joint efforts,’’ Dmitry Peskov, the Kremlin’s press secretary, told reporters ahead of the visit. India-Russia annual trade in recent years has touched $64 billion, but Russian imports from India are less than $5 billion. The effort will be to boost Indian exports. 

Officials in the MEA, echoed Peskov’s sentiment, saying that “businessmen of both countries will meet together to find ways of trade with the aim to bridge the trade deficit between India, Russia. Export of marine products, potatoes, and pomegranates from India has been discussed”. 

With the export of sea food from coastal states to the US now literally impossible following the Trump tariffs, Indian exporters are on the lookout for fresh markets. Russia is one of the countries that India is now looking to for both marine and farm products. So pharmaceutical products, agriculture and consumer goods are in the economic basket for Russia to buy. 

At the same time, talks on a Free Trade Agreement between India and the Eurasian Economic Union is on. The first round of talks took place last year and the effort is to tie up the agreement in a couple of months. 

Mobility Agreement

An agreement on mobility of skilled and semi-skilled workers will be announced at the summit. 

Fertilizers

Russia is the largest supplier of fertilizers to India and in July this year, fertiliser shipments were worth over $280 million. There is talk now of Indian investments in Russia’s fertiliser sector. No numbers are yet known but the move is on.

Technology Transfer

The production of small nuclear reactors is also in the cards, with Russia willing to provide the technology. Russia, unlike America and many Western nations, is willing to share technology and transfer the know-how to India. The Brahmos missile is a good example of joint production with technology transfer from Russia. “So,  it’s not only just production or it’s not only acts of buying or selling. It’s an exchange of high technologies, exchange of know- how,” explains the Kremlin spokesman. 

Without going into specifics, he said that Russia was developing a “variety of complicated system’’ and we are willing to share it with “our Indian friends”. 

Air Defence  

India is planning to acquire five squadrons of S400 Triumf air defence systems from Russia. Though no announcements will be made, it is already known that India is looking to replenish its stock. More surface-to-air missiles that reportedly worked very well during Operation Sindoor will also be part of defence purchases from Russia. 

Both these issues will be discussed during Prime Minister Modi’s meeting with President Putin on December 5. 

Russia is trying to push for sale of the Sukhoi-57, the multi-role fighter aircraft, which the Kremlin has described as the “best in the world”. 

However, no decision has been taken on that yet. Putin will likely push for it during talks.