Modi, Putin chart roadmap: Labour mobility, n-energy, trade & defence

World capitals tracked the state visit amid efforts by the US to force an end to the Ukraine war after penalising India for its import of Russian oil which the Trump administration claimed was funding Putin’s war machine. Incidentally, there was no mention of Ukraine in the joint statement issued in Delhi although both Modi and Putin spoke about it.

Following the Modi-Putin talks, the two sides inked 16 pacts, ranging from health to maritime cooperation, fertiliser to customs, academic to media collaboration. Defence and nuclear energy cooperation dominated discussions.

Praising Putin, Modi said, “Over the past two-and-a-half-decades, he has continually nurtured this relationship with his leadership and vision. His leadership has elevated our mutual ties to new heights in every circumstance. I sincerely thank President Putin, my friend, for his deep friendship with India, and his unwavering commitment.”

“Over the past eight decades, the world has witnessed many ups and downs. Humanity has faced numerous challenges and crises. 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.

Putin said his conversation Thursday evening with Prime Minister Modi at his home over dinner was “highly useful”. The talks, he said, took place “in a constructive and friendly atmosphere, in the spirit of the Russia-India special and privileged strategic partnership”.

“Mr Prime Minister and I have established close working and personal contacts. We met earlier this year in September at the SCO Summit, we regularly hold telephone conversations, and we keep the development of Russia-India cooperation in all its strategic dimensions, as well as the implementation of key bilateral projects, under our constant personal oversight. Today, together with our delegations, we conducted an in-depth review of our multifaceted Russia-India partnership and discussed pressing global and regional issues,” he said.

Modi flagged economic ties as a major takeaway. “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 will also add new dimensions to our areas of cooperation.”

Putin spoke about “expanding economic cooperation” and said, “Last year, bilateral trade increased by another 12%, reaching yet another all-time high… the volume stands at around USD 64-65 billion… At the same time, it seems entirely within our reach to bring this figure to USD 100 billion. To achieve this important goal, we have agreed on the Programme for the Development of Russia-India Economic Cooperation until 2030.”

He also flagged the payment mechanism, saying “our countries are steadily moving to national currencies in bilateral trade. Their share in commercial transactions already stands at 96%.”

The joint statement,  in an oblique reference to the Trump tariffs, said, “The sides underline the importance of an open, inclusive, transparent and non-discriminatory multilateral trade system with the World Trade Organisation at its core. Both sides emphasised that addressing tariff and non-tariff trade barriers, removing bottlenecks in logistics, promoting connectivity, ensuring smooth payment mechanisms, finding mutually acceptable solutions for issues of insurance and reinsurance and regular interaction between the businesses of the two countries are among the key elements for timely achievement of the revised bilateral trade target of USD 100 billion by 2030.”

On the FTA talks, Modi said, “Both sides are actively working towards the early conclusion of the Free Trade Agreement with the Eurasian Economic Union.”

On the labour mobility pact, he said, “Manpower mobility will not only connect our people but also create new strength and new opportunities for both countries. I am pleased that two agreements have been concluded today to promote this cooperation. We will work together on vocational education, skilling and training. We will also enhance exchanges between our students, scholars and sportspersons.”

The joint statement welcomed the signing of agreements related to “mobility of skilled workers”.

While Modi did not mention defence discussions, Putin said, “I would also like to note that Russia and India have traditionally maintained close cooperation in the military-technical sphere. For more than half a century, our country has assisted in equipping and modernising the Indian Armed Forces, including air defence, aviation and the Navy.” There was no announcement, however, on the S-400 air defence systems or the Sukhoi-57 fighter aircraft.

The joint statement said the two sides “agreed to encourage joint manufacturing in India of spare parts, components, aggregates and other products for maintenance of Russian origin arms and defence equipment under the Make-in-India programme through transfer of technology and setting up of joint ventures for meeting the needs of the Indian Armed Forces as well as subsequent export to mutually friendly third countries”.

The two sides also flagged concerns regarding terrorist exploitation of information and communications technology such as “payment technologies, social media platforms and fundraising methods and misuse of unmanned aerial vehicles (UAVs or drones)”.

Modi said, “I am pleased that we will soon be introducing a free 30-day e-tourist visa and a 30-day group tourist visa for Russian citizens.”

He also spoke about critical minerals and their use in the semiconductor industry. “Our cooperation in critical minerals is vital for ensuring secure and diversified supply chains across the world. This will provide strong support to our partnership in clean energy, high-tech manufacturing, and new-age industries,” he said.

The two sides agreed to broaden cooperation in nuclear energy, including fuel cycle, life cycle support for operating the Kudankulam Nuclear Power Plant (KKNPP) and non-power applications, and to elaborate a new agenda of interaction in the field of peaceful use of atomic energy and related high technologies.

While they welcomed the progress achieved in implementation of KKNPP including the construction of the remaining NPP units and agreed on adhering to the timeline for supplies of equipment and fuel, they mentioned discussions on a “second site in India” for NPP, where the Indian side will strive to “finalise formal allotment of the second site”.

Modi also said, “Enhancing connectivity between our two countries is a key priority for us. We will move forward with renewed energy on the INSTC, the Northern Sea Route, and the Chennai-Vladivostok Corridors. I am pleased that we will now cooperate on the training of India’s seafarers for operations in polar waters. This will not only strengthen our collaboration in the Arctic but also create new employment opportunities for the youth of India.”