New Delhi: India and Russia unveiled an economic programme extending to 2030 Friday to strengthen financial ties and tackle global tariff challenges. Highlights include a mobility agreement and plans to establish joint factories in the fertiliser and pharma industries.
Russian President Vladimir Putin is in India for a two-day visit and met Prime Minister Narendra Modi Friday to discuss a free trade agreement (FTA), clean energy transition, and co-operation in other sectors.
“Taking economic cooperation to new heights is our shared priority. To realise this, today, we have agreed on an Economic Cooperation programme for 2030,” Modi said in a joint press statement with Putin.
“This will make our trade and investment diversified, balanced, and sustainable, and add new dimensions to the areas of cooperation,” according to the joint statement.
Modi said, “Both sides are working with the Eurasian Economic Union for an early conclusion of the FTA. Our close cooperation in the field of agriculture and fertilisers is important for food security and farmer welfare. I am happy that, taking this forward, both sides are now making efforts to produce urea together.”
Since the start of the Russia-Ukraine war in 2022, India’s economic ties with Moscow have increased. Bilateral trade reached $68 billion last financial year, largely due to oil imports. India, however, has sought greater access for its exports to Russia.
Putin, in his statement, said that trade ties are set to remain at nearly $60 billion this year, too. This assertion comes despite American sanctions on Rosneft and Lukoil—two of the largest Russian oil firms. Rosneft, particularly, has a significant footprint in the Indian market.
There were no mentions of defence deals. Putin, though, said Russia is glad of its efforts in aiding the “modernisation of the Indian armed forces”.
”Energy security has been a strong and important pillar of the India-Russia partnership,” according to Modi. “Our decades-long cooperation in the field of civil nuclear energy has been instrumental in making our shared clean energy priorities meaningful. We will continue this win-win collaboration,” he said.
Putin offered to collaborate with India to build small, modular nuclear reactors. These would produce up to 300 MW of energy, aiding New Delhi’s clean energy transition. Russia is already helping India construct six nuclear reactors in Tamil Nadu’s Kudankulam.
Modi said, “Manpower & mobility will connect our people, as well as create new strength and new opportunities for both countries. I am happy that two agreements have been signed today to promote that.”
“We will also work together on vocational education, skilling and training. We will also increase the exchange of students, scholars and sportsmen from both countries,” he added.
Regional and global issues were also discussed. Commenting on the Russia-Ukraine war, Modi said, “India has been in favour of peace with regard to Ukraine from the beginning. We welcome all efforts being made for a peaceful and lasting resolution of this issue.”
Adding, “India has always been and will continue to be ready to contribute.”
While Putin made no mention of the war in the ‘Joint Press Statement’, he had opened his remarks earlier at the meeting, thanking India for its willingness to support Moscow in finding a peaceful solution.
India has long maintained that any solution will come through dialogue and diplomacy only. It has maintained a diplomatic tightrope on the nearly four-year-long war, as the US and Europe have become Kyiv’s strongest backers.
India would “soon” issue electronic visas for 30 days for Russian citizens or groups travelling to India for tourism, Modi also announced.
Putin announced a new pharmaceutical factory in Russia. The two nations will jointly produce high-end drugs at the factory, using Indian technology.
The two nations also announced the closing of a number of deals. Apart from a mobility partnership, these cover food standards, customs, and healthcare.
Besides the summit, Putin received a ceremonial welcome at Rashtrapati Bhavan Friday. There will be a State banquet in his honour in the evening before he departs.
(Edited by Madhurita Goswami)