Russia, India announce enhanced trade ties

Russian President Vladimir Putin held talks with Indian Prime Minister Narendra Modi on Friday at an annual summit and agreed to diversify mutual economic ties, as the United States presses India to revise its decades-old partnership with Russia.

- BY RAJESH ROY AND AIJAZ HUSSAIN

VLADIMIR PUTIN, left, and Prime Minister Narendra Modi in New Delhi.

(MIKHAIL TERESHCHENKO Kremlin Pool Photo)

The 23rd Russia-India Summit comes at a pivotal moment as the U.S. pushes for a Ukraine peace deal while seeking global cooperation. It will test New Delhi’s efforts to balance relations with Moscow and Washington as the nearly four-year war in Ukraine grinds on.

Putin was received by Modi at an airport in New Delhi on Thursday. The Indian leader gave Putin a bearhug and a tight handshake with the gusto of an old friend.

After the talks, Putin and Modi announced that India and Russia have finalized an economic cooperation program until 2030, which will help diversify mutual businesses to boost annual trade to $100 billion by 2030. They also emphasized strong energy ties.

Bilateral trade between the two countries stood at $68.7 billion in the last fiscal year ended March. The trade is heavily skewed in favor of Russia with deep deficits for India, which it is looking to rectify the situation by pushing exports.

"To achieve this significant goal, a program for the development of Russian-Indian economic cooperation until 2030 has been agreed upon," Putin said. He said work is underway on an agreement for India to establish a free trade zone with the Eurasian Economic Union, a Moscow-dominated economic grouping of several ex-Soviet nations, adding that it could help increase trade.

"Russia is a reliable supplier of energy resources and everything necessary for the development of India’s energy sector," Putin said. "We are ready to continue ensuring the uninterrupted supply of fuel for the rapidly growing Indian economy."

Before the summit talks, the Russian leader said the two countries "have a very trusting relationship when it comes to military-technical cooperation."