With bilateral trade between India and Russia expected to touch $20 billion next year, Prime Minister Narendra Modi’s meeting with Russian President Vladimir Putin at the 15th India-Russia annual summit in New Delhi next week, will give a boost to four areas — defence, space, civil nuclear energy and trade.
Several deals are expected to be inked during the summit-level meeting, including deals for co-production of mid-range military and civilian aircraft, including MC-21 mid-range aircraft whose mass production will begin in 2017.
For Putin, this will the fifth visit to India as Russian president — he made his maiden visit to India in 2002 during his first term as president.
According to sources, the idea of jointly manufacturing the aircraft in the country as part of the ‘Make in India’ campaign, leading to creation of domestic jobs and transfer of aircraft technology will be on top of the agenda of talks. Besides of being hopeful of jointly working with Russia on aircraft engines, plans are afoot to build production plants in India for Sukhoi Superjet-100 and KA-226 helicopters, both of which can be used for military and civilian purposes.
Seeking stronger relations with India, Putin’s visit is expected to witness inking of agreement in the agri business sector as Russia after self-imposed ban on food imports—meat, fish, fruits, vegetables, milk and milk products from the West and European countries would be looking for these products from India.
In recent years, Russian-Indian cooperation gradually goes beyond the buyer-seller model. Private companies are beginning to appear in this market, including AFK Sistema, which established the mobile operator Sistema Shyam Teleservices in India. Also, the DST Global Fund has invested $210 million in Flipkart.
In July this year, Indian company Aniara signed an agreement for design and production of telecommunication satellites with Russian company Dauria Aerospace. The project is worth $210 million. Along with another company, Dauria will implement the project, and be responsible for analysis of the mission, flight, and ground control. The joint cooperation will widen Aniara’s space business by enabling it to enter satellite communications and broadcasting markets in other countries.