Russia Aims To Double Trade With India In 3 Years

Russian President Vladimir Putin arrived in New Delhi on Monday, pledging to tighten defence ties with India, while promising to double the current level of bilateral trade from $10 billion to $20 billion within the next three years.

Putin, who will meet with Indian Prime Minister Manmohan Singh on a one-day visit, said that the two BRIC countries could expand on their current trade and defence relationship, especially as India was now the world’s largest arms importer while Russian-made military equipment accounted for 70 percent of Indian arms supplies.

Russian President Vladimir Putin arrived in New Delhi on Monday, pledging to tighten defence ties with India, while promising to double the current level of bilateral trade from $10 billion to $20 billion within the next three years.

Putin, who will meet with Indian Prime Minister Manmohan Singh on a one-day visit, said that the two BRIC countries could expand on their current trade and defence relationship, especially as India was now the world’s largest arms importer while Russian-made military equipment accounted for 70 percent of Indian arms supplies.

[quote]”The strategic nature of partnership between India and Russia is witnessed by the unprecedented level of our military and technical cooperation,” said Putin, as cited by AFP, adding that “the joint development of advanced armaments rather than just purchasing military products” would be key to future relations.”[/quote]

Relations between the two countries have been testy recently, particularly after a delay in the handover of aircraft carrier Admiral Gorshkov to India as well a decision by the Indian Supreme Court to cancel the 2G licence granted to Russian telecom giant Sistema’s Indian venture Sistema Shyam.

In an article written for The Hindu, Putin however stressed that “deepening of friendship and cooperation with India is among the top priorities of our (Russia’s) foreign policy.”

[quote]“We have a common goal — to make the world we live in more just, democratic and secure and to facilitate resolving global and regional problems, including the situation in the Middle East and North Africa, and in Afghanistan,” wrote Putin. “I would like to note that our joint work in the BRICS has become increasingly intensive. The authority of that association is growing every year, and that is quite natural. Our proposed initiatives are aimed at establishing new architecture for a multipolar world order.”[/quote]

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According to Reuters, India plans to spend about $100 billion over the next 10 years to upgrade its largely Soviet-era military equipment, as it looks to match the economic and military might of Asian rivals China.

Likely tie-ups between India and Russia include a $3.77 billion deal for 42 Su-30MKI fighters and a deal to produce the fifth generation Sukhoi fighter, said Igor Korotchenko, director of the Centre for Analysis of World Arms Trade, although India, noticeably, has diversified its arms suppliers in recent years.

Meawhile, India is also hoping that Russia will support its bid to join an expanded UN Security Council, which currently only has five permanent members – Russia, China, the United States, France and Britain.

The Kremlin have already stated that India is “one of the worthy and strong candidates for a permanent seat in the expanded UN Security Council,” while adding that the BRICS must act as a counterweight to western powers in the future.