PM Modi invites Russian Federation to set up defence industrial park in India
06 October, 2018, 14:50 | Author: Carlos George
Although there was no public signing, the deal was sealed during President Vladimir Putin's ongoing visit to New Delhi for an annual summit. America's threat of sanctions, however, did impact the progress of negotiations between India and Russian Federation.
The volume of trade between Russia and India exceeded $9 billion a year ago and is set to grow further with the nations aiming to boost trade and encourage investments, according to Russian President Vladimir Putin.
Talking about areas of cooperation, he said energy, transport and climate change are the key sectors and Russian Federation has always been a sound supplier of energy for India. The contract is estimated to be worth more than five-billion dollars and gives the Indian military the ability to shoot down aircraft and missiles at unprecedented ranges. Additionally, this will likely not be the last Indian purchase of Russian military equipment, despite New Delhi diversifying its military imports.
Eight agreements were also signed between the two sides at the end of the talks.
India wants the long-range missile systems to tighten its air defence mechanism, particularly along the almost 4,000-km-long Sino-India border. India places top priority on ties with Russian Federation.
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Speaking to India Today, Gasprom Bank's Representative in India Sergey Mitreykin said that the banking communities had been talking about this arrangement for the past two-three years and now because of the current environment taking, it was time to take some practical steps instead of just discussing them.
Over the past two years, India and the United States have signed two defense pacts that allow the use of each other's military bases for repairs and replenishment of supplies, and allow India to purchase advanced American military communications technology. "We have agreed to continue cooperation with these worldwide organisations", he added.
Russian Federation is a major energy partner of India, he said, adding there is a need to increase cooperation in new and renewable energy also. He also invited Modi to Vladivostok as the main guest of the Economic Forum in September 2019.
Speaking at a business meeting where visiting Russian President Vladimir Putin was also present, Modi said the trade between the two nations has risen 20 per cent in 2017-18. "We can not prejudge any sanctions decisions".
U.S. Donald Trump's administration has explicitly urged its ally India against buying the S-400 Triumf missile system. The deal figured in discussions in New Delhi when U.S. Secretary of State Mike Pompeo visited India last month. However, the two sides failed to conclude two other major deals, for Stealth frigates and assault rifles, that were reportedly ready, as officials said further negotiations were needed.
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