How strong will India-Russia relations be? Understand the full equation

India and Russia's relations are decades old. Political and trade relations between the two countries have been strong for nearly 78 years. Barring a few isolated incidents, Russia has always stood by India. In this context, Russian President Vladimir Putin has arrived in India on a two-day visit amid a climate of global tension. Let's understand the significance of this visit for both countries. How strong will the relationship, especially trade relations, be?

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His visit have on India-Russia trade relations

According to government sources, this visit will greatly contribute to strengthening economic cooperation. President Putin is traveling with a large group of businesspeople. India hopes to improve its trade deficit with Russia. Several measures are being explored to increase Indian exports to Russia. Particular attention is being paid to pharmaceuticals, automobiles, marine products, and agricultural products. Putin's visit to India is expected to boost Indian businesses. Furthermore, Indian businesses and products will gain a larger market, leading to increased employment. If deals are struck in the agricultural sector, Indian farmers will also benefit.

Defense sector will also benefit

Several agreements and MoUs are expected between the two countries in the areas of shipping, healthcare, fertilizers, and connectivity. Further cooperation will also be seen in people-to-people relations, mobility partnerships, culture, and scientific cooperation. According to sources within the GoI, India may purchase 23 more S-400 regiments from Russia. Additionally, a new S-400 deal between the two countries could include up to 50% technology transfer. The total value of this deal could be between ₹18,000 and ₹24,000 crore.

Political and trade relations between the two countries has strong

According to sources, India will discuss the Su-57 fifth-generation fighter aircraft for the IAF. India and Russia will pursue joint manufacturing and technology transfer. The Indian government could also purchase 2-3 squadrons, potentially worth ₹35,000-₹40,000 crore. HAL could also be involved in the potential SU-57 deal, further strengthening India's defense sector.

Business will be so big

India and Russia aim to increase bilateral trade to $100 billion by 2030. Their trade is projected to grow from approximately $13 billion in 2021 to approximately $69 billion in 2024-25, almost entirely dependent on Indian energy imports. Indian Trade Minister Piyush Goyal stated that India wants to diversify its exports and increase sales of automobiles, electronics goods, data-processing equipment, heavy machinery, industrial components, textiles, and food products.

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Summary

Piyush Goyal stated at the conference that Russia has a strong demand for industrial goods and consumer products, which presents numerous untapped opportunities for Indian businesses. He stated that we need to further diversify our trade and make it more balanced between Russia and India.