Economy is the new lynchpin of Indo-Russian ties, Pg10

Key Highlights:

• President Vladimir Putin visited India on December 4-5, marking a shift towards deeper economic engagement amid Western pressure.
• A strategic economic roadmap for 2030 was established, alongside agreements on labour mobility, fertilisers, nuclear energy, and tourism.
• Bilateral trade reached approximately $69 billion by March 2025, a significant increase from $8 billion in 2020, driven by India's imports of discounted crude oil.
• The goal is to reach $100 billion in trade by 2030 by removing trade barriers and ensuring smoother payment mechanisms.

Detailed Insights:

• The India-Russia relationship, historically rooted in defence cooperation, is now focusing on economic ties due to geopolitical shifts and Western pressures.
• The labour mobility pact offers opportunities for Indian professionals in Russia, addressing Russia's labour shortage and potentially creating a significant Indian diaspora.
• Russia has expressed readiness to ensure uninterrupted fuel shipments to India, highlighting the energy sector's importance in the bilateral relationship.
• India aims to balance its relationship with Russia alongside its ties with the US and Europe, navigating the evolving dynamics of the Ukraine war negotiations.
• Intensified joint work is underway regarding a free trade agreement on goods between India and the Eurasian Economic Union.
• India needs to correct the trade imbalance with Russia, as the current trade basket is heavily skewed in Russia's favor.

Key Concepts Involved:

• Labour Mobility Pact: An agreement allowing professionals to work in another country, addressing labour shortages and fostering economic exchange.
• Free Trade Agreement: A pact between two or more countries to reduce trade barriers like tariffs and quotas, promoting increased trade.
• Eurasian Economic Union: An economic union of states located primarily in Northern Eurasia that aims for regional economic integration.