Diplomatist Magazine Diplomatist October 2019 | Page 16

SPECIAL REPORT
This includes the inking of the USD 5.4 billion
deal for fi ve Russian Almaz-Antei S-400 Triumf
self-propelled surface-to-air missile systems,
despite the looming threat of US sanctions, which
above all reveals New Delhi’s resolve to sustain
and expand defence ties with Moscow.
The two countries have also concluded
agreements for the procurement of two Grigorovich-
class stealth frigates and the licensed production of
an equal number in India, the licensed manufacturer
of over 700,000 AK-203 7.62x45 mm assault rifl es
and the import of 464 T-90MS Main Battle Tanks
in kit form for local assembly.
Furthermore, India has also signed an agreement
with Moscow to lease its second Akula-class
nuclear-powered submarine (SSN) and clinch a
joint venture between Russian Helicopters and
India’s state-owned Hindustan Aeronautics Limited
(HAL) for 200 Ka-226T helicopters of which 140
will be built under a transfer of technology.
Negotiations are in an advanced stage for HAL
to licence build another 18 Sukhoi Su-30MKI
aircraft in India after it completes construction
of 272 similar fighters in 2020, up-gradation
of a limited number of Su-30MKI aircraft and
procurement of a squadron of 21 ‘mothballed’ MiG
29 combat aircraft in addition to an assorted other
and varied ammunition.
Russian engineers and scientists are also
closely involved in assisting India to build a
16 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 10 • October 2019, Noida
series of nuclear-powered submarines, in an
ongoing programme in which no other P-5 country
would risk involvement. This level of classifi ed
and strategic collaboration is also the exclusive
leitmotif that binds Moscow and Delhi closer.
Opportunities and Challenges
Both countries have travelled a long distance
over the past seven decades, through numerous
ups and downs, but eventually settling down to
a mature and steady relationship underpinned by
the spirit of partnership and mutual understanding.
The investment-trade target set for 2025 and
the ‘single-window’ mechanism established by
Moscow also provides an opportunity for Indian
entrepreneurs to improve their share in Russia’s
global trade, which accounted for a mere 1.6 per
cent in 2017.
In the realm of military commerce, there is
a need to replicate the BrahMos cruise missile
model to jointly develop and manufacture defence
equipment in India, not merely for domestic
employment but also for export.
While future prospects for greater
economic, military, commercial and
technical engagement between India
and Russia are promising, both have
to contend with at least three serious
challenges.
The fi rst challenge emanates from
the growing tension between Russia and
the USA, both of which are ironically
India’s critical defence partners. This
is a trilateral challenge, which could
slip out of hand if not met squarely and
resolved soon.
Secondly, Russia needs to fi x quality-
control standards with regard to defence
equipment, timely delivery and adequate
transfer of technology. And thirdly, India
needs to acknowledge that while the
defence is the mainstay of mutual trade
with Russia, the overall volume of trade
has to be increased in substantial measure. Hence,
greater attention will need to be paid to other
sectors, for which India’s burgeoning private sector
will perforce have to be roped in. 
* Author is Former Financial Advisor
(Acquisition), Ministry of Defence