Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context: PM Modi welcomed Russian President Putin at Palam Air Force Station in a special gesture; Putin’s first India state visit since the Ukraine war began, attending a private dinner at 7 Lok Kalyan Marg.
More in News:
- The 23rd India–Russia Annual Summit will be held at Hyderabad House, preceded by a ceremonial reception at Rashtrapati Bhavan and a wreath-laying at Rajghat, underscoring the diplomatic significance of the visit.
- Defence Minister Rajnath Singh met Russian Defence Minister Andrei Belousov, reaffirming that the bilateral defence partnership rests on deep mutual trust and long-standing respect.
- India reiterated its commitment to Atmanirbhar Bharat in defence manufacturing, with discussions highlighting new avenues for collaboration in advanced and niche defence technologies and potential defence exports.
Historical Timeline of India–Russia Relations
- 1947: Establishment of diplomatic relations between India and the Soviet Union.
- 1975: India’s first satellite Aryabhata launched on Soviet Soyuz launch vehicle.
- 1988: Agreement to build Kudankulam Nuclear Power Plant in Tamil Nadu.
- 1993: Signing of Treaty of Friendship and Cooperation formalising post-Cold War ties.
- 2010: Elevation to Special and Privileged Strategic Partnership between the two nations.
- 2021: First India–Russia 2+2 Ministerial Dialogue conducted between foreign and defence ministers.
Core Pillars of the Partnership
- Political and Diplomatic Convergence
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- Annual Summit remains the central mechanism of political engagement.
- Regular ministerial exchanges, 2+2 Dialogue, and cooperation in UN, G20, BRICS, SCO deepen convergence.
- Russia consistently supports India’s permanent UNSC seat aspiration.
- Defence and Security Cooperation
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- Russia supplied 36% of India’s defence imports during 2020–24 (SIPRI).
- India procures major platforms like S-400 systems and MiG-29K aircraft.
- Defence ties moved beyond purchases to joint research and production, including BrahMos missiles.
- Both countries conduct joint exercises INDRA and Avia Indra.
- Energy Security
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- Russia is India’s largest crude supplier, offering discounted oil that helps contain inflation.
- Indian public and private companies invest in the Russian Far East, including ONGC’s energy projects.
- Russia assists India’s nuclear expansion through projects like Kudankulam Nuclear Power Plant.
- Trade and Economic Relations
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- Bilateral trade reached USD 68.7 billion in FY 2024-25.
- Target set to increase trade to USD 100 billion by 2030.
- India exports pharmaceuticals, chemicals, iron and steel to Russia.
- 90% of bilateral trade uses local currencies (rupee–ruble).
- Connectivity Projects
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- Russia strengthens India’s access to Central Asia and Eurasia through INSTC, Northern Sea Route, and Chennai–Vladivostok Corridor.
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- Technology Cooperation
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- Russia supports India’s Gaganyaan crewed mission, enhancing space capabilities.
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- Cultural Linkages
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- Indian films gained popularity in the Soviet era; yoga and Russian ballet sustain cultural goodwill.
Challenges in India–Russia Relations
- Trade Imbalance
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- Russian imports (USD 63.84 billion) far exceed Indian exports (USD 4.88 billion) in FY 2024-25.
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- Rupee Surplus Issue
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- Large rupee deposits accumulated in Special Rupee Vostro Accounts, limiting Russia’s ability to utilise funds.
- Russia’s foreign minister described this surplus as a “problem” due to constraints in global transactions.
- Declining Defence Imports
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- India diversifies defence procurement from France, US, Israel alongside domestic indigenisation.
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- Diverging Geopolitical Priorities
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- India deepens ties with the US through initiatives like Quad.
- Russia strengthens its “no limits” partnership with China (2022).
- Russia’s military cooperation with Pakistan adds complexity.
- US Sanctions (CAATSA)
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- No major defence deals since the S-400 due to CAATSA risks.
- CAATSA sanctions nations dealing with Russia, Iran, and North Korea.
India’s Balancing Strategy Between Russia and USA
- Strategic Autonomy
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- India maintains flexible foreign policy to balance both powers.
- India abstained on the UNSC resolution condemning Russia’s actions in Ukraine.
- Interest-Based Engagement
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- Despite US tariffs on discounted Russian oil purchases, India continues strong ties with Russia.
- India uses quiet diplomacy in BRICS, SCO, G20 to act as a bridge among major powers.
- Alternative Payment Systems
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- India promotes rupee–ruble trade and alternative settlement channels to bypass sanctions.
Way Forward
- Reinforcing Mutual Trust
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- Both nations must address concerns arising from India-US and Russia-China closer alignments.
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- Strengthening Tier-II Diplomacy
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- Promote youth engagement, academic exchanges, and media presence such as Indian correspondents in Russia.
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- Diversifying Trade
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- Expand trade beyond oil to sectors like IT, textiles, and agriculture to boost Indian exports.
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- Enhancing Joint R&D
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- Build on successes like BrahMos and AK-203 rifles to co-develop next-generation defence technologies.
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- Concluding EAEU FTA
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- A Free Trade Agreement with the Eurasian Economic Union could expand market access.
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- Advancing Nuclear Cooperation
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- Russia can support India’s development of Small Modular Reactors (SMRs).
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- Expanding New-Age Cooperation
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- Enhance collaboration in AI, cybersecurity, and other emerging domains.
Conclusion
- The trajectory of India–Russia ties will depend on how effectively both nations adapt to evolving global shifts, broaden cooperation beyond traditional sectors, and strengthen engagement in technology, innovation, and societal linkages.
India Cuts Russian Oil Imports by 38% in October 2025
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