New Delhi Rejects Outside Pressure, Upholds "Special and Privileged" Bond with Moscow

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Bilateral trade between India and Russia has grown significantly in recent times, reaching as high as $68.7 billion in FY 2024-25. (Image:Brookings Institution)

 Context: The US President Donald Trump has recently signed an executive order to impose an additional 25% tariff on India, as part of measures to deal with Russia's actions in Ukraine. The US alleges that India's continued purchase of Russian oil has sustained the Russian war machine in Ukraine for so long, despite crippling sanctions. Meanwhile, the Indian authorities have reacted, saying India's  relationship with Russia is based on strategic autonomy and national interests.

History of India-Russia Relations:

  • The Cold War Era (1947-1991):
  1. Pro-Soviet Foreign Policy: Though India launched the Non-Aligned Movement (NAM) after independence, its foreign policy took a pro-Soviet stance, exemplified by the Indo-Soviet Treaty of Peace, Friendship, and Cooperation (1971). This was primarily due to the West's presumed hostility towards India's national interests at that time.
  2. Economic Cooperation: The Soviet Union played an instrumental role in India's early industrialization efforts after independence, including the establishment of the steel plants in Bhilai and Bokaro.
  3. Defense Cooperation: During this time, the Soviet Union was India's most crucial defense partner, supplying modern military hardware at an affordable price along with technology transfer such as the co-production of MiG-21 fighter jets.
  4. Political Support: The Soviet Union became a vocal supporter of India's domestic political concerns such as the Kashmir issue.
  • Post-Cold War Era (1991-2000):
  1. Thaw in Ties: Following the collapse of the Soviet Union, Russia under President Boris Yeltsin focused on its internal issues and sought to reset its ties with the West. This led to disruption in defence supply to India and weakening of the economic relationship.
  2. Revival of the Relationship: The 1993 Treaty of Friendship and Cooperation helped to stabilize the relationship, leading to several military-technical cooperation agreements.
  • The Modern Strategic Partnership (2000-Present): In 2000, India and Russia signed the 'Declaration on Strategic Partnership', later elevated to a 'Special and Privileged Strategic Partnership' in 2010, formalizing the multifarious nature of the relationship.
Areas of Cooperation:
  • Defense and Military-Technical Cooperation:
  1. Russia has been India's largest and most trusted defense supplier with a long history of defense purchases.
  2. The partnership has evolved into the arena of joint research, development, and co-production of advcanced defense equipments including the BrahMos supersonic cruise missile, Su-30MKI fighter jets and T-90 tanks.
  3. Both countries regularly hold joint military exercises such as 'Indra' to improve interoperability and strategic cooperation.
  • Energy Cooperation:
  1. India's imports of Russian crude oil have surged in recent years, becoming a crucial pillar in its national strategy on energy security.
  2. Russia has been steadfast in providing technology and assistance for the construction of nuclear power plants e.g the Kudankulam Nuclear Power Plant (KKNPP).
  3. Indian and Russian companies are collaborating in Russia's oil and gas sectors, including exploration, production, and joint ventures.
  • Space Cooperation:
  1. India's first satellite Aryabhata was launched by a Soviet Kosmos-3M launch vehicle. The first Indian to go to space, Rakesh Sharma, was part of the Soviet Interkosmos programme, flying abroad a Soyuz T-11 rocket.
  2. Two countries cooperate on various space projects and satellite navigation systems. Russia is providing training to Indian astronauts as part of Gaganyaan Mission. India and Russia are also collaborating on the Russian GLONASS system.
  • Economic and Trade Cooperation:
  1. India and Russia have successfully expanded economic cooperation beyond defense and energy, encompassing pharmaceuticals, information technology (IT), steel, mining, and agriculture.
  2. There are several institutional mechanisms to promote bilateral trade and investment such as the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).
  • Multilateral Cooperation:
  1. Both countries collaborate on a range of issues in a plethora of multilateral forums like UN, BRICS,and SCO.
  2. Russia has been an ardent supporter of India's global ambitions including the permanent membership at the United Nations Security Council (UNSC).
Hurdles in India-Russia Relations:
  • Geopolitical Realignment:
  1. India's growing proximity to the West, including the US and Quad, is viewed with suspicion by Russia which sees the Quad as an 'Asian NATO'.
  2. In the aftermath of the Ukraine conflict and subsequent Western sanctions, Russia has deepened its ties with China, which has worried India given its ongoing border issues with Beijing.
  3. India's careful stance on the Ukraine conflict has made it difficult for the country to balance its ties with Russia and the West.
  • Challenges in Defense Cooperation:
  1. India's efforts to diversify its defense imports away from Russia has led to a significant decline in Russia's share in India's defense market, impacting Moscow's earnings.
  2. Delayed supply of Russian military equipment along with the CAATSA sanctions by the US have been recurrent issues, affecting the operational readiness of Indian armed forces.
  • Economic and Trade Challenges:
  1. Despite a remarkable increase in bilateral trade reaching $68.7 billion in FY 2024-25, India's exports to Russia remain relatively low, widening the trade deficit.
  2. Operational challenges remain to streamline a Rupee-Rubble trade mechanism to bypass international sanctions on Russia.
  3. Lack of a robust logistical infrastructure such as the International North-South Transport Corridor (INSTC) creates obstacles to expand bilateral trade.
  • Different Views on Global and Regional Issues:
  1. Russia has openly criticized the Indo-Pacific concept and the Quad, calling them efforts to contain China, in contrast to India's growing engagement with these frameworks.
  2. Though both India and Russia have similar concerns regarding the issue of terrorism in Afghanistan, differences exist in terms of alliances and approaches to deal with this challenge.
The Way Forward:
  • India's foreign policy should demonstrate strategic autonomy by continually engaging with Russia while strengthening ties with the West.
  • India needs to explore new areas of cooperation, including pharmaceuticals, IT, and joint ventures in manufacturing.
  • Leverage multilateral forums like BRICS and SCO to advance shared interests and promote a more inclusive and multipolar world order.
  • Mutual cooperation is necessary to resolve issues regarding payment mechanisms and supply chain disruptions to build cofidence in the relationship.
Conclusion: The India-Russia partnership, though embedded in strong historical foundations, is currently experiencing a complex and dynamic geopolitical landscape. While the dynamics have changed, the core principles of mutual respect and cooperation endure.

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