Seeking balance, India, Russia agree to deepen economic ties

India and Russia on Friday unveiled a range of measures to expand and strengthen their economic partnership, including a five-year plan to address growing imbalance in two-way trade, pacts on mobility and steps to ensure energy security, even as Prime Minister Narendra Modi impressed on President Vladimir Putin the need for a peaceful resolution to the war in Ukraine.

- Rezaul H Laskar

Economic and commercial ties took centrestage at the India-Russia Summit, for which Putin made his first visit to India in four years, marking a shift in a longstanding partnership that has traditionally focused on defence and strategic relations. The development was in some ways a riposte to Western powers that have pushed India to reduce its economic ties with Russia as part of their efforts to end the Ukraine conflict.

Modi emphasised the importance of India-Russia ties at a media interaction after his talks with Putin. “Over the past eight decades, the world has witnessed many ups and downs...Yet, through all of this, the India-Russia friendship has remained steady like a guiding star. Built on mutual respect and deep trust, our relationship has stood the test of time,” he said, speaking in Hindi.

Putin referred to agreements that were concluded to broaden economic cooperation, and said the two countries are “important partners” in trade, investment and technologies. Both sides, he said, are up to the task of growing two-way trade to $100 billion by 2030 and have set objectives to remove barriers hampering the flow of goods and capital. The current value of trade between the countries is $68 billion.

“Elevating our economic cooperation to new heights is a shared priority. To realise this, we have agreed on an Economic Cooperation Programme until 2030. This will make our trade and investment more diversified, balanced and sustainable, and also add new dimensions to our areas of cooperation," Modi said.

Both sides are actively working for the early conclusion of a free trade agreement with the Eurasian Economic Union, and their cooperation in agriculture and fertilisers, including urea production, is vital for food security, he said.