Russian President Vladimir Putin and Indian Prime Minister Narendra Modi convened on July 7, 2023, for the 23rd Russia-India Summit in New Delhi, reaffirming their commitment to enhancing economic ties between their nations. This meeting comes at a critical juncture as the United States intensifies pressure on India to reconsider its long-standing relationship with Russia, particularly in light of the ongoing conflict in Ukraine.
The summit marked a significant moment in international relations, showcasing India’s balancing act between its historical ties with Moscow and its strategic partnership with Washington. During their discussions, Putin and Modi unveiled a comprehensive economic cooperation program aimed at boosting bilateral trade to $100 billion by 2030. Last fiscal year, trade between India and Russia reached $68.7 billion, with India facing a trade deficit, prompting efforts to enhance exports.
Putin emphasized the importance of energy cooperation, stating, “Russia is a reliable supplier of energy resources and everything necessary for the development of India’s energy sector.” He reassured that Russia would continue to provide uninterrupted fuel supplies to support India’s rapidly growing economy. In a bid to facilitate greater trade, the leaders discussed the establishment of a free trade agreement between India and the Eurasian Economic Union, which could further expand economic opportunities.
Modi echoed Putin’s sentiments, highlighting the strong foundation of energy security that has characterized India-Russia relations over the decades. He announced initiatives such as issuing free electronic visas for Russian tourists and groups visiting India, further promoting people-to-people connections. Modi also expressed India’s intent to expedite the finalization of a free trade agreement with the Eurasian Economic Union.
The backdrop of this summit is complex, as India’s historical ties with Russia have drawn scrutiny from Western nations. Critics warn that deepening relations with Moscow could strain India’s connections with the European Union and the United States, particularly as the U.S. has linked India’s import of Russian oil to its trade policies. The U.S. previously raised tariffs on Indian goods to 50% in August 2022, citing India’s discounted purchases of Russian crude oil. India has consistently maintained that it complies with international sanctions and will continue to do so.
As the summit unfolded, Modi highlighted India’s commitment to enhancing its military-technical cooperation with Russia, discussing the anticipated delivery of two additional S-400 missile systems. This follows a previous agreement for three such systems valued at approximately $5.4 billion. The ongoing conflict in Ukraine has caused delays in these deliveries, underscoring the interconnectedness of global events and supply chains.
The strategic implications of Modi’s meeting with Putin were underscored by analysts, including Praveen Donthi from the International Crisis Group, who noted that India’s pursuit of a partnership with the U.S. complicates its historical ties with Russia. Donthi remarked, “The significant change now is its desire to be a strategic partner with the U.S. at the same time, which will be a diplomatic challenge.”
Discussions also touched upon India’s aspirations to increase its exports of pharmaceuticals, agriculture, and textiles to Russia, as well as efforts to ensure long-term fertilizer supplies. The two countries are also working on an agreement to facilitate the migration of Indian skilled workers to Russia, further deepening their collaboration.
Putin’s visit to India, which was his first since 2021, reflects the ongoing evolution of international relationships in a rapidly changing geopolitical landscape. As these two nations continue to strengthen their ties, the outcomes of their agreements and collaborations will be closely monitored by the global community.
