India and Pax Europa 2022
Countries, politicians and "political analysts" of Western countries have found a new career option in criticizing India for its neutral position in the ongoing Ukraine - Russia conflict. The prime culprit in fanning the flames of war is the United States of America by providing weapons of war to Ukraine, while India has taken a clear and transparent stand that it will provide life-line equipment, medicines, medical equipment and any other material needed for humanitarian purposes, to both countries without any preconditions.
In this article we will look only at the India - Russia trade relationships, apart from the fact that India will implement only that policies that benefit the People-of-India above any other factors, and that as a country, we have a clear perspective of our global strength and the ideology to use our strength for the good of societies across the world.
Trade between the two countries is an area which has been identified for special focus by both countries. In 2020, India exported $2.87B to Russia. The main products that India exported to Russia were Packaged Medicines ($444M), Broadcasting Equipment ($235M), and Tea ($88.3M). During the last 25 years the exports of India to Russia have increased at an annualized rate of 4.14%, from $1.04B in 1995 to $2.87B in 2020.
In 2020, Russia exported $5.93B to India. The main products that Russia exported to India are Coal Briquettes ($923M), Diamonds ($684M), and Other Sea Vessels ($346M). During the last 25 years the exports of Russia to India have increased at an annualized rate of 8.69%, from $738M in 1995 to $5.93B in 2020.
Keeping the growth of bi-lateral trade, the India leadership has set a target of total trade in goods and services of US$ 30 billion each way by 2025. Both sides are working to expand the trade basket and identify new areas of trade. In 2016, Indian oil companies bought stakes in Russian companies and oilfields worth US$ 5.5 billion, and Rosneft has acquired an Indian company, ESSAR, in a deal worth US$ 13 billion. This is not only Russia’s largest investment in India, but also India’s single largest FDI (foreign direct investment). India and Russia have set up a US$ 1 billion Fund to promote mutual investment in infrastructure and technology projects.
India, Russia and other neighbouring countries are engaged in efforts to make operational the International North-South Transport Corridor which promises to propel connectivity and trade relations between the two countries. Work is in progress on a ‘Green Corridor’ to ease trade and customs formalities.
Looking ahead India and Russia have identified several new areas of cooperation. These range from deep sea exploration to building knowledge-based economies based on science and technology, innovation, robotics and artificial intelligence, focusing on infrastructure, skill development, agriculture, shipbuilding, railways, aviation and greater connectivity, especially people-to-people contacts.
In short, India is not going to endanger decades of diplomatic and financial engagement with Russia to become cheerleaders of USA or Western countries. Our Prime Minister Shri. Narendra Modi's 3-days visit to Denmark, Germany and France and the attendance of EU leadership at the 2nd India-Nordic Summit in Copenhagen, has clearly reinforced India's stand that only a peaceful resolution of any conflict and increase in bi-lateral and multi-lateral trade relationships between India and Europe, and the continued trade between India and Russia are the best road to follow for mutual prosperity and long-term peace.
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