Strengthening India-Russia Relations amidst Geopolitical Shifts

India and Russia have shared a longstanding relationship, which, since 2010, has been defined by a special and privileged strategic partnership. The relation between India and Russia has evolved from a strong historical foundation, bolstered by mutual political interests and shared goals. Russia has supported India's bid for a seat at the UN Security Council and its membership in the Shanghai Cooperation Organization (SCO), recognizing India's rising prominence in the global arena. Despite these positive diplomatic strides, the economic cooperation between the two countries has not lived up to expectations, particularly in the face of shifting geopolitical landscapes.

Economic Challenges and Opportunities

Russia's Turn to the East policy, aimed at recalibrating its economic relationships in the wake of strained ties with the West, has had significant implications for India Russia relations. Although both nations have expressed intentions to boost trade, economic cooperation has struggled to match political ambitions. The COVID-19 pandemic and the ongoing conflict in Ukraine have disrupted supply chains and fuelled protectionist sentiments, highlighting the vulnerabilities of bilateral trade. However, there have been notable strides in energy trade, particularly with India increasing its imports of Russian oil, which now accounts for a substantial portion of India's crude oil imports. This shift has benefited both countries, as India has capitalized on discounted Russian oil, while also profiting from refining and exporting petroleum products to European markets.

While the trade balance between India and Russia has been heavily skewed towards energy imports, non-energy sectors have shown less growth. The challenges in diversifying trade stem from logistical issues, the risk of secondary sanctions, and an underdeveloped payment mechanism. These factors, coupled with Russia's heavy reliance on energy exports, have hindered a more balanced and sustainable trade relationship.

The Need for Strategic Shifts in Bilateral Cooperation

For India Russia friendship to thrive beyond the energy sector, there is a clear need for a strategic shift. Both nations must look beyond traditional domains like military and energy cooperation. Expanding investment in sectors such as metallurgy, pharmaceuticals, and mechanical engineering, particularly in third countries, presents a promising avenue for growth. Additionally, scientific, technological, and educational collaborations could play a pivotal role in strengthening ties. Areas such as biotechnology, agriculture, high-tech industries, and space research hold potential for joint ventures that would benefit both nations in the long term.

Political and economic cooperation also needs to evolve from a buyer-seller model to a more holistic, strategic partnership. To achieve this, both nations must engage in long-term planning, identifying key growth points for collaboration over the next decade or more.

Conclusion

In strengthening India-Russia relations, both nations must take bold steps to deepen collaboration, focusing on areas that complement their political and economic interests. Know more about the India and Russia relations in detailed articles here.