Recently, India and Russia marked the 25th anniversary of their Strategic Partnership.
Origins and Evolution of the India–Russia Strategic Partnership
- Historic Milestone (2000): On October 3, 2000, India and Russia signed the Declaration on the India–Russia Strategic Partnership, marking a landmark shift from a traditional friendship to a comprehensive post–Cold War strategic relationship.
- Strategic Upgrade (2010): In 2010, the partnership was elevated to a “Special and Privileged Strategic Partnership,” reflecting both nations’ intent to expand collaboration beyond conventional areas.
- Continuity and Resilience (2025): As the partnership completes 25 years in 2025, it stands as a model of strategic endurance and adaptability.
Institutional Framework and Strategic Dialogue Mechanisms
- Twin Inter-Governmental Commissions: The India–Russia Inter-Governmental Commission (IRIGC) serves as the operational backbone of the relationship, functioning through two key verticals:
- IRIGC–TEC (Trade, Economic, Scientific, Technological and Cultural Cooperation): Co-chaired by India’s External Affairs Minister and Russia’s First Deputy Prime Minister, it oversees trade, technology, and innovation-driven engagement.
- IRIGC–M&MTC (Military and Military-Technical Cooperation): Co-chaired by the Defence Ministers of both nations, it steers collaboration in defence production, modernisation, and technology transfer.
- Annual Summit – The Apex Dialogue: The Annual Summit remains the highest-level mechanism for political direction and strategic guidance.
- Twenty-two summits have been held so far, with the 2024 Moscow Summit adopting the joint statement “India–Russia: Enduring and Expanding Partnership.”
- 2+2 Ministerial Dialogue: Introduced in 2021, the 2+2 format enables Foreign and Defence Ministers from both sides to synchronise strategic priorities, bridging the diplomatic and security dimensions of the partnership.
- National Security and Parliamentary Linkages: Regular National Security Adviser (NSA) dialogues, ministerial visits, and the Inter-Parliamentary Commission sustain coordination at multiple levels.
Pillars of Cooperation
- Defence and Strategic Security: Defence remains the cornerstone of the India–Russia Special and Privileged Strategic Partnership.
- The largest share of India’s imports came from Russia (36 per cent); however, this was a significantly smaller share than in 2015–19 (55 per cent) and 2010–14 (72 per cent)
- Key initiatives include:
- S-400 Triumf missile systems, T-90 tanks, Su-30MKI aircraft, and MiG-29 fighters, alongside the AK-203 assault rifle production in India.
- The BrahMos missile project, a symbol of Indo–Russian technological synergy, with plans for export to friendly nations.
- Regular joint military exercises such as INDRA, and collaboration in defence modernisation, cybersecurity, and space-based security systems.
- Energy Cooperation – The Strategic Lifeline: Energy forms the second pillar of engagement, with Russia being a key supplier of crude oil, coal, and nuclear energy technology.
- The Kudankulam Nuclear Power Project (Tamil Nadu)—India’s largest nuclear power collaboration—epitomises the civil nuclear partnership.
- India’s investments in Russian oil and gas fields and the import of discounted crude have enhanced its energy security and diversification.
- The two sides are expanding cooperation in liquefied natural gas (LNG), Arctic energy exploration, and renewable sectors, aligning with India’s energy transition goals.
- India imports 35-40% of the country’s crude intake from Russia.
- Trade and Economic Partnership: Economic cooperation has witnessed a quantum leap, making Russia one of India’s top five trading partners.
- Bilateral trade reached a record USD 65.7 billion in FY 2023–24, driven by oil imports and fertilizer trade, with a target to reach USD 100 billion by 2030.
- India’s major exports include pharmaceuticals, engineering goods, and chemicals, while imports are dominated by energy, fertilizers, and precious metals.
- The two countries are pursuing a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU) to institutionalise trade expansion.
- New trade routes such as the International North–South Transport Corridor (INSTC) and the Chennai–Vladivostok Maritime Corridor aim to enhance logistical connectivity and reduce transit costs.
- Technology and Innovation Linkages: Emerging areas of cooperation include artificial intelligence (AI), quantum computing, shipbuilding, and railway modernisation.
- Initiatives under Atal Innovation Mission and Russia’s Sirius Educational Foundation promote joint research and innovation among youth.
Multilateral Convergence
- India and Russia maintain close coordination in global and regional platforms such as the United Nations (UN), G20, Shanghai Cooperation Organisation (SCO), and BRICS. Russia continues to support India’s bid for a permanent seat in the United Nations Security Council (UNSC).
- Both nations uphold a multipolar, rules-based global order, emphasising cooperation on counter-terrorism, Afghanistan’s stability, maritime security, and development priorities of the Global South. Their alignment within BRICS and SCO further strengthens collective advocacy for reformed global governance.
Achievements Over 25 Years
- Trade Resilience under Sanctions: Despite global sanctions and supply disruptions, India–Russia trade has grown steadily, showcasing the resilience of their economic partnership.
- Example: Bilateral trade nearly doubled to USD 65 billion in 2023, with rupee-denominated payments and mechanisms to manage the rupee surplus, ensuring continuity despite financial restrictions.
- Defence Modernisation and Indigenisation: Strategic defence cooperation has shifted from imports to joint production and technology transfer, enhancing India’s Atmanirbhar Bharat goals.
- Example: India signed a USD 248 million deal with Russia for upgraded T-72 tank engines with technology transfer to Armoured Vehicles Nigam Ltd; progress continues on the BrahMos and S-400 missile systems.
- Energy Security Collaboration: Russia remains a vital energy partner, helping India ensure affordable oil supplies and energy diversification amid global volatility.
- Example: India’s crude oil imports from Russia surged over 15-fold since 2022, making Russia India’s top oil supplier by 2024.
- Science, Technology, and Space Cooperation: The partnership has expanded into high-technology sectors, strengthening research and innovation links.
- Example: Establishment of an Indo-Russian mirror laboratory on space data systems and Russian support through Sokol suits and astronaut training for India’s Gaganyaan mission.
- Societal and Cultural Linkages: Educational exchanges, tourism, and cultural ties have reinforced people-to-people connections, ensuring the relationship remains broad-based.
- Example: Expansion of e-visa facilities, student exchanges, and cultural festivals like the Days of Russian Culture in India and Namaste India in Russia.
Key Challenges
- Sanctions and Payment Restrictions: Western sanctions have complicated financial settlements, limiting smooth trade and investment flows.
- Example: Indian banks face caution in processing rupee–ruble transactions, slowing trade despite government facilitation measures.
- Trade Imbalance: India’s imports of oil, coal, and fertilisers far exceed its exports, creating a growing trade deficit and dependency.
- Example: In FY 2024, imports exceeded exports by over USD 50 billion, underlining the need for export diversification into pharmaceuticals, machinery, and IT services.
- Defence Delivery Delays: Sanctions and supply chain issues have caused delays in major defence projects, affecting timelines.
- Example: S-400 air defence system deliveries are delayed, with the final batches now expected by 2026–27 instead of 2024.
- China Factor: Russia’s increasing closeness with China requires India to maintain strategic balance while preserving mutual trust.
- Example: Joint Russia–China military drills in the Sea of Japan and Arctic cooperation highlight Russia’s parallel strategic priorities.
- Technology and Dual-Use Export Scrutiny: India’s growing role as a supplier of restricted tech to Russia has drawn scrutiny from Western nations.
- Example: Japanese sanctions on a Bengaluru-based tech firm for alleged Russia-linked shipments reflect rising compliance pressure.
- Logistical Gaps: Inefficient transport routes and limited financial infrastructure hinder optimal trade expansion.
- Example: Slow operationalisation of the International North-South Transport Corridor (INSTC) and Chennai–Vladivostok Maritime Corridor (CVMC) affects connectivity gains.
Historical Evolution of India – Russia Relations
- Early Diplomatic Roots: India and the USSR established diplomatic relations in 1947, laying the foundation for a long-term partnership built on trust and mutual respect.
- Soviet Support for Industrialisation: In the 1950s–60s, the USSR assisted in building India’s industrial base through projects like Bhilai Steel Plant, Bokaro, and Ranchi’s Heavy Machine Building Plant.
- Strategic Bond of 1971: The Indo–Soviet Treaty of Peace, Friendship and Cooperation (1971) provided India crucial diplomatic and military support during the Bangladesh Liberation War.
- Post-Soviet Redefinition: After the USSR’s dissolution in 1991, relations were restructured around democratic and market principles to suit new global realities.
- Institutionalised Partnership: In 2000, the relationship was upgraded to a Strategic Partnership, and in 2010, to a Special and Privileged Strategic Partnership — one of India’s few such ties globally.
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Way Forward
- FTA Conclusion and Trade Diversification: Early completion of the India–Eurasian Economic Union (EAEU) Free Trade Agreement, in which Russia is the largest member and primary partner, will help boost India–Russia trade volumes, reduce tariffs, and address the trade imbalance.
- Example: Once finalised, the FTA is expected to raise bilateral trade with Russia and other EAEU members beyond USD 100 billion by 2030, enhancing market access for Indian pharmaceuticals, textiles, and engineering goods.
- Joint R&D and Co-Manufacturing Expansion: Strengthening collaboration in emerging technologies such as AI, green hydrogen, semiconductors, and aerospace will modernise industrial ties.
- Example: The proposed Indo-Russian technology innovation fund and cooperation under Skolkovo Innovation Centre aim to accelerate joint research and industrial innovation.
- Financial Infrastructure and Settlements: Enhancing rupee–ruble trade mechanisms, digital payment systems, and banking connectivity will ensure smoother financial transactions.
- Example: India’s plan to expand the Unified Payments Interface (UPI) and integrate it with Russia’s MIR system will reduce transaction costs and currency risk.
- Connectivity Corridors and Logistics: Operationalising major corridors will strengthen supply chains and boost strategic connectivity between South Asia, Central Asia, and Europe.
- Example: Fast-tracking the International North-South Transport Corridor (INSTC) and Chennai–Vladivostok Maritime Corridor (CVMC) can cut freight costs by nearly 30% and improve delivery timelines.
- Far East and Arctic Engagement: Deepening cooperation in the Russian Far East and Arctic will open new avenues for resource access and economic partnerships.
- Example: India’s participation in the Eastern Economic Forum (2024) and the establishment of the Indian workforce corridor in the Far East reflect growing engagement.
- People-Centric and Educational Diplomacy: Expanding student exchanges, vocational training, and cultural collaborations will sustain the social dimension of bilateral ties.
- Example: Plans to set up an Indian Institute of Technology (IIT) campus in Russia and the revival of academic exchange programs underlines this people-first approach.
- Balanced Strategic Autonomy: India must continue pursuing independent foreign policy while maintaining robust ties with Russia and balancing relations with Western and Indo-Pacific partners.
- Example: India’s stance on the Ukraine conflict, where it called for dialogue and diplomacy while safeguarding national interests, reflects this calibrated autonomy.
Conclusion
The 25th anniversary of the India–Russia Strategic Partnership underscores a legacy of trust, resilience, and forward-looking cooperation. Upholding India’s constitutional value of sovereignty and self-reliance, it reinforces strategic autonomy, energy security, and global stability.