Putin, Modi focus on expanding India-Russia trade ties, firm up 5-year roadmap

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 long-standing 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.

“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.

Against the backdrop of US sanctions on Russian energy firms to squeeze the funding of the war in Ukraine, Putin expressed satisfaction at the share of national currencies in mutual settlements rising to 96%. “We have established resilient channels of credit, financial and inter-banking operations. Russian economic operators have broadened the sphere of use of Indian rupees which we receive from the fulfillment of export contracts. Russian rubles have been used to provide loans for large joint projects,” he said.

With Russia growing from a share of about 1% of India’s energy purchases in 2022 to one of largest suppliers at present, Putin pledged to continue the successful energy partnership. “Russia is a reliable supplier of oil, gas, coal and everything required for the development of India’s energy. We are ready to continue uninterrupted shipments of fuel for the fast-growing Indian economy,” he said.

Modi described energy security as a vital pillar of the bilateral partnership and said cooperation in civil nuclear energy too has played a key role in advancing clean energy priorities. “We will continue to take this win-win cooperation forward,” he said.

Modi also praised Putin for his “unwavering commitment” to strengthening bilateral ties.

“For the past two-and-a-half decades, he has nurtured these ties with his leadership and vision. His leadership has taken our relations to new heights under all circumstances,” he said.

Amid fresh efforts by the US to find a peaceful solution to the war in Ukraine, Modi conveyed to Putin India’s support for all efforts aimed at a negotiated settlement of the conflict. “Since the beginning, India has consistently advocated for peace with regards to the situation in Ukraine. We welcome all efforts being made for a peaceful and lasting resolution in this matter. India has always been, and will always be ready to contribute,” he said.

Modi also emphasised India’s stance on Ukraine in televised remarks at the start of his talks with Putin, saying he had conveyed the global context to the Russian leader. “I have always said India isn’t neutral, India has taken a side and it is on the side of peace. We support all efforts for peace and stand shoulder-to-shoulder with every effort for peace,” he said.

Putin noted he had shared a “great deal of details” about events in Ukraine. “We are taking steps with partners, including the US, on a possible peaceful settlement. Thank you for the attention and for your efforts aimed at finding a solution to this situation,” he said.

However, the Ukraine crisis wasn’t mentioned in the joint statement, which expressed concern at the humanitarian situation in Gaza and stressed the importance of all parties remaining committed to agreements for cessation of conflict, humanitarian assistance and a sustainable peace.

The two sides also agreed to cooperate in critical minerals, with Modi describing the sector as vital for ensuring secure and diversified supply chains. “This will provide strong support to our partnership in clean energy, high-tech manufacturing, and new-age industries,” he said.

Besides adopting the “Programme for the Development of Strategic Areas of India-Russia Economic Cooperation till 2030” or Programme 2030, the two sides concluded several agreements to expand cooperation in a number of crucial sectors such as mobility and migration and shipping.

Foreign secretary Vikram Misri told a media briefing that economic cooperation was the “driving impulse” of Putin’s visit. Expanding bilateral trade and strengthening economic cooperation requires “swiftly addressing non-tariff barriers and regulatory impediments” to boost Indian exports in sectors such as pharmaceuticals, agriculture and marine products, and this is key to correcting the trade imbalance, he said.

While two-way trade grew to $64 billion in 2024, largely on the back of India’s purchases of Russian crude, India’s exports accounted for less than $5 billion.

Two agreements on temporary labour activity and combating irregular migration will establish a framework for movement of skilled workers from India to Russia and promote safe and mutually beneficial migration. Misri said these agreements will help skilled Indian workers, especially in IT, construction and engineering, to meet Russia’s labour needs.

A memorandum of understanding (MoU) will facilitate the training of Indian seafarers for ships operating in polar waters by Russian agencies specialising in this field, while another MoU covers cooperation in shipping, ports, joint mineral exploration, and research and development.

Another MoU between Russia’s JSC UralChem and three Indian state-run firms will create a framework for a joint venture in urea manufacturing in Russia by Indian companies, while a protocol between India’s Central Board of Indirect Taxes and Customs and Russia’s Federal Customs Service covers cooperation in exchange of information on goods and vehicles to optimise customs control.

There were also agreements to strengthen cross-border postal cooperation and support e-commerce, cooperation in healthcare, medical education and joint research, and cooperation in food safety. Two agreements focused on academic collaboration while another five covered cooperation between state-run media entities of the two sides.

India also announced the grant of free 30-day e-tourist visas for Russian nationals on reciprocal basis, and free group tourist visas.

Putin arrived in New Delhi on Thursday evening to a red carpet welcome, with Modi personally receiving him at the airport and later hosting him for a private dinner that allowed the two leaders to discuss a range of issues away from the public glare. The visit was closely followed by Western capitals, which were hoping that the India-Russia Summit would not strengthen Putin’s hand at a time when they are economically pressuring Moscow to end the war in Ukraine.