page_title: India–Russia relations
section_title: Economic relations
hierarchical_section_title: India–Russia relations / Russia and India / Economic relations
caption_attribution_description: English: World Diamond Conference.
context_page_description: Indo-Russian relations are the bilateral relations between India and Russia. During the Cold War, India and the Soviet Union had a strong strategic, military, economic and diplomatic relationship. After the Dissolution of the Soviet Union, Russia inherited its close relationship with India which resulted in both nations sharing a special relationship. Russia and India both term this relationship as a "special and privileged strategic partnership". Owing to the bonhomie shared by the countries' respective leaders, Prime Minister Narendra Modi and President Vladimir Putin, the bilateral relationship has seen further growth and development. An informal meeting between them in 2018 at Sochi helped accelerate the partnership, displaying the role of interaction and cooperation between India and Russia.
  Traditionally, the Indo-Russian strategic partnership has been built on five major components: politics, defence, civil nuclear energy, anti-terrorism co-operation and space. These five major components were highlighted in a speech given by former Indian Foreign Secretary Ranjan Mathai in Russia.
context_section_description: Bilateral trade between both countries is concentrated in key value chain sectors. These sectors include highly diversified segments such as machinery, electronics, aerospace, automobile, commercial shipping, chemicals, pharmaceuticals, fertilisers, apparels, precious stones, industrial metals, petroleum products, coal, high-end tea and coffee products. Bilateral trade in 2002 stood at $1.5 billion and increased by over 7 times to $11 billion in 2012 and with both governments setting a bilateral trade target of $30 billion by 2025. Bilaterial bodies that conduct economic relations between the two countries include IRIGC, the Indo-Russian Forum on Trade and Investment, the India-Russia Business Council, the India-Russia Trade, Investment and Technology Promotion Council, the India-Russia CEOs' Council and the India-Russia Chamber of Commerce.
  Both Governments have jointly developed an economic strategy that involves using a number of economic components to increase future bilateral trade. These include development of an FTA between India & the EEU, a bilateral treaty on the promotion and protection of investments, a new economic planning mechanism built into IRIGC, simplication of customs procedures, new long-term agreements in the expansion of energy trade including nuclear, oil and gas. Finally, long term supplier contracts in key sectors such as oil, gas and rough diamonds. Companies such as Rosneft, Gazprom, Essar & Alrosa will act as long term suppliers respectively.
  Russia has stated it will co-operate with India on its "Make in India" initiative by engagement in the development of "Smart Cites", the DMIC, the aerospace sector, the commercial nuclear sector and enhancement in manufacturing of Russian military products through co-development and co-production. Russia agreed to participate in the vast, over $100 billion, DMIC infrastructure project which will eventually connect Delhi and Mumbai with railways, highways, ports, interconnecting smart cities and industrial parks. Russian President Vladimir Putin stated in an interview that one of his government's priorities was of building a smart city in India, "a smart city on the basis of Russian technologies." AFK Sistema will likely be the primary Russian company involved in the project due to its previous experience in smart city projects in Ufa, Kazan and Rostov.
  Both countries have also agreed to work together in the aerospace sector to co-development and co-produce aircraft, examples include the Sukhoi Superjet 100, MS-21, FGFA, MTA and Kamov Ka-226. Some of the co-developed aircraft will be jointly commercially exported to third countries and foreign markets e.g. FGFA and Kamov Ka-226. President of Russia's UAC Mikhail Pogosyan stated in an interview, "We are planning to sell in India about 100 passenger aircraft by 2030, which will account for 10 percent of the Indian market of airliners in the segment" and further stated, "The unprecedented scope of Russian-Indian cooperation in military aviation has created a scientific and engineering basis for undertaking joint projects in civil aviation."
  India is currently the world's largest cutting & polishing centre for diamonds. Both countries have agreed to streamline their bilateral trade in diamonds through reductions in regulations and tariffs. Indian Prime Minister Modi stated in an interview, "I made three proposals to President Putin. First, I would like Alrosa to have direct long-term contracts with more Indian companies. I am pleased to know that they are moving in this direction. Second, I want Alrosa and others to trade directly on our diamond bourse. We have decided to create a Special Notified Zone where mining companies can trade diamonds on consignment basis and re-export unsold ones. Third, I asked to reform regulation so that Russia can send rough diamonds to India and reimport polished diamonds without extra duties". Analysts predict through streamlined procedures and initiatives bilateral trade in this area will significantly increase.
  Russia has agreed to build more than 20 nuclear reactors over th
caption: Prime Minister Modi and President Putin at the World Diamond Conference in New Delhi in 2014
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