India and Russia Approved Strategic Projects

General Studies Paper-2

Context: India and Russia have agreed on six new strategic projects during the 8th Session of the India-Russia Working Group on Priority Investment Projects (IRWG-PIP) held in New Delhi.

Background

• The “Declaration on the India-Russia Strategic Partnership” was signed in October 2000 during President Vladimir Putin’s visit to India.
• In 2010, the partnership was elevated to a “Special and Privileged Strategic Partnership,” reflecting increased cooperation across key sectors: defense, politics, economics, and culture.
• India-Russia ties are characterized by high-level engagements, institutional dialogue mechanisms, and cooperation in multilateral forums like BRICS, SCO, and the UN.

Key Points of the 8th IRWG-PIP Session

• Six New Strategic Projects: India and Russia have agreed to collaborate on six new strategic projects with the goal of boosting bilateral investment.
  • Sectors involved include trade, technological innovation, and economic development.
• Framework: The IRWG-PIP operates under the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation.

Significance of the Agreement

• Strengthens Economic Resilience: Diversifies India’s trade portfolio amid shifting global dynamics.
• Reduces Overdependence on the West: Reinforces strategic autonomy by balancing relations with major powers.
• Boosts ‘Make in India’ & Atmanirbhar Bharat: Encourages technology transfer, localization of production, and industrial growth.
• Geopolitical Leverage: Enhances India’s role in a multipolar world and Eurasian regional dynamics.

India and Russia Relations

• They share a long-standing relationship, with bilateral trade and investment ties dating back to the Soviet era.
• Over the years, their cooperation has strengthened, with trade growing from USD 1.4 billion in 1995 to USD 65.7 billion in FY 2023-24.
• Key exports from India include agri-products, chemicals, pharmaceuticals, and machinery, while Russia primarily exports oil, fertilizers, and mineral fuels.
• Both countries aim to reach a bilateral trade target of USD 100 billion by 2030.
• Bilateral cooperation is supported by key forums like the India-Russia Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), which includes 15 Working Groups and 6 Sub-Groups.
• The India-Russia Strategic Economic Dialogue (IRSED) also plays a vital role.
• Multilateral engagement: India & Russia cooperate closely at several multilateral platforms such as the UN, G20, BRICS & SCO.
  • India’s Presidency of the G20 & SCO in 2023 afforded the opportunity for officials and ministers of both countries to meet on the sidelines of various events in India
• Defence: Bilateral projects include the supply of S-400, licensed production of T-90 tanks and Su-30 MKI, supply of MiG-29 and Kamov helicopters, INS Vikramaditya (formerly Admiral Gorshkov), production of AK-203 rifles in India and BrahMos missiles.