India and Russia have unveiled a plan to strengthen their strategic economic cooperation during their 22nd annual summit in Moscow between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
This move comes at a time when trade is rapidly expanding between the two nations. The two nations have set a high target of exchanging commodities valued at $100 billion by 2030.
Growth in Trade and Investments
Nine Memorandums of Understanding (MoUs), each with a distinct theme, were signed by PM Modi and President Putin. The agreement to promote trade and cooperative economic ventures in Russia’s Far East, which was considered a crucial region due to its abundance of resources, was among the most significant. Additionally, the agreements seek to maximize prospects through constructing the Vladivostok-Chennai route, accelerating the International North-South Transport route’s (INSTC) integration, and making the most of the Northern Sea Route.
Attention on Arctic and Eurasian Connectivity
Leaders from Russia and India have decided to assist in constructing and opening up maritime lanes via the Northern Sea Route in the Arctic. The goal of this is to help in growth of trade and stabilize transportation networks in Eurasia. Stable supply and demand networks are being established throughout the region as part of the cooperation. Experts view this as a potential counterbalance to Chinese efforts in Eurasia.
Technological and Financial Integration
Economic cooperation’s most important aspect is the usage of national currencies in a two-way settlement system and the adoption of digital financial assets. These might assist in mitigating the impact of Russia’s removal from SWIFT. As part of this strategic financial union, Russia and India also recognize each other’s RuPay and MiR card systems. This facilitates and expedites money transfers between the two nations.
Collaboration of Energy and Resources
The agreements demonstrate that nations are collaborating more closely in critical energy domains, like nuclear energy. There was also discussion about increasing the flow of anthracite coal and coking from Russia to India. This would satisfy industry demands and strengthen India’s energy security.