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.
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