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India-Russia Business Talks Cement Ties Amid Global Turmoil, Says Report

A recent report underscores a high-level business dialogue between Indian and Russian leaders as a pivotal effort to stabilize bilateral relations during global disruptions. It positions India as an "economic lifeline" for Russia, particularly through oil purchases, while navigating Western diplomatic and tariff pressures. The partnership is viewed as a strategic Russian move to withstand international isolation and sanctions. Meanwhile, India must carefully balance this relationship with its deep economic integration with Western nations to avoid jeopardizing trade and investment inflows.

Key Points: India-Russia Business Talks Key to Strategic Ties: Report

  • Business talks follow Modi-Putin summit
  • India seen as economic lifeline for Russia
  • Focus on investment and joint projects
  • India balances ties amid Western pressure
  • Relationship deemed globally consequential
2 min read

India-Russia business talks seen as key factor in cementing ties: Report

Report highlights India-Russia business dialogue as crucial for maintaining stable ties amid sanctions and global economic pressures.

"For Russia, the partnership with India is a critical component of its strategy to remain a great power - Independent Online (IOL)"

New Delhi, Feb 2

The meeting between Indian and Russian business leaders, along with government officials in Moscow last week, is seen as part of the attempt by the two countries to maintain a stable relationship amid the geopolitical turmoil and global economic disruptions.

The way for the business dialogue was paved by the summit between Prime Minister Narendra Modi and Russian President Vladimir Putin, held in Delhi in December.

"For Russia, the partnership with India is a critical component of its strategy to remain a great power despite economic sanctions and international isolation designed to cripple its economy over time," according to an article in South Africa's news website, Independent Online (IOL).

The article sees India as having become an "economic lifeline for Russia" because of the crude oil purchases by "one of the world's largest and fastest-growing economies."

The gathering focused on expanding investment, developing financial instruments, and implementing joint projects.

It also observes that while Russia is currently a sanctioned state engaged in a protracted war in Ukraine, India faces a threat from the United States of 500 per cent tariffs if it continues to buy Russian oil. Besides, there is also diplomatic pressure from Western Europe as well to stop buying Russian oil.

The article observes that this convergence of war, economic coercion, and regional insecurity makes the India-Russia ties one of the most consequential relationships in the world today.

The article also highlights that India's resilient domestic market is closely integrated with the West as the US and the European Union are its largest trading partners and the source of the critical investment, technology, and access to financial markets that spur growth.

Besides, the US supply chains are looking at India as an alternative to China to leverage the democratic country's youthful population which has the potential of making India the world's next manufacturing hub.

According to the article, India has to keep a fine balance in its relationship with Russia as it could trigger Western sanctions which would hit trade and foreign direct investment (FDI) flowing into the country at a time when India is headed to become the world's third largest economy.

- IANS

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Reader Comments

P
Priya S
Buying cheap Russian oil has helped control inflation here, which is a big relief for common people. But the 500% tariff threat from the US is very serious. We can't afford to lose Western trade and investment. Hope our diplomats are negotiating hard behind the scenes.
R
Rohit P
Russia has been a reliable partner for decades when others turned their backs. It's only right that we stand by them now in their time of need. This business dialogue is important to find new areas of cooperation beyond oil and defence.
S
Sarah B
While I understand the economic pragmatism, we must also think about the moral dimension. Continuing to financially support Russia's war effort through oil purchases is problematic. India's foreign policy needs to reflect its values as much as its interests.
V
Vikram M
The real opportunity is becoming the next manufacturing hub! If US supply chains shift from China to India, it could create millions of jobs. That's the bigger picture we should focus on. Balancing Russia ties is important, but not at the cost of that golden opportunity.
K
Karthik V
It's a delicate dance. On one hand, cheap oil boosts our economy. On the other, Western sanctions could cripple our tech and investment flow. The article is correct – this is one of the most consequential relationships to manage right now. Our diplomats have their work cut out.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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