India, Russia vow $100 bn trade by 2030, say won’t halt crude biz

Prime Minister Narendra Modi and Russian President Vladimir Putin, on a two-day visit to New Delhi, today announced the widening of economic ties and hinted that crude oil trade would continue despite pressure from US President Donald Trump. The two sides added multiple dimensions to their long-standing partnership and set a target of $100 billion bilateral trade by 2030, up from the present $68 billion.

New Delhi and Moscow inked agreements on labour mobility, announced a new e-visa for tourism and expanded medical education. They also okayed projects for fertilisers and pharmaceuticals to diversify ties beyond the traditional linkages of military equipment and energy.

The decisions were announced after PM Modi and Putin concluded their annual leaders’ summit, which generated global attention. It was the Russian President’s first visit to India since the conflict with Ukraine started about four years ago.

“Russia is ready for uninterrupted shipments of fuel to India,” Putin said in a statement after the talks.

Answering media queries after the summit on crude oil purchase from Russia, Foreign Secretary Vikram Misri said, “Indian private and public sector companies make decisions on the basis of evolving market dynamics while sourcing their supplies. Within the four corners of this approach, we are continuing our cooperation between our two countries.”

‘Time-tested friendship’

India-Russia friendship is built on trust, will stay steadfast like pole star. Narendra Modi, PM

We want multi-faceted ties with India in various fields. But relations shouldn’t be limited to trade alone. Vladimir Putin, Russia President

It was an ample hint that New Delhi would not succumb to pressure from the US and its allies to stop buying Russian crude oil. India faces 50 per cent tariffs, including 25 per cent punitive, from the US over continued crude oil purchase from Moscow.

Modi also addressed the issue of Russia-Ukraine conflict saying India had always wanted a peaceful and permanent solution was found. “We always welcome pro-peace efforts. India is ready to support peace initiatives and will remain committed to the idea in the future too,” he said. Just a day ahead of the summit, India had backed the US-proposed peace plan.

A big takeaway of the summit is the mobility agreement that allows Indian professionals to work in Russia. Modi promised to a delegation of visiting Russian industry leaders that “India would provide a ‘Russia-ready’ labour force trained in Russian language”. “The India-Russia friendship remained steadfast like a pole star,” said the PM.

The two leaders discussed trade expansion, cooperation on Arctic navigation and continuing work on civilian nuclear power. The two sides signed an agreement for shipments of Indian fisheries and agricultural goods to Russia while Indian mariners would be trained by specialists on operating ships in Artic waters.

Separate MoUs were inked on medical education (allowing higher number of Indian students in Russia), environment, space and on setting up an Indian fertiliser unit in Russia.

On trade, the two sides are gradually moving towards use of national currencies for bilateral payment settlements while connectivity would be improved by building new international logistics routes—the International North-South Transport Corridor (INSTC) via Iran and the Chennai-Vladivostok sea route.

Earlier in the morning, Putin was accorded a tri-services guard of honour at the Rashtrapati Bhawan. He laid a wreath at the Rajghat and attended a business meeting with Modi. President Droupadi Murmu later hosted a dinner for Putin.