NEWS – Due to the ongoing conflict with Ukraine affecting Moscow’s ability to supply military spare parts to India, Russia has agreed to establish more joint production facilities in India. This move aims to prevent delays in the supply chain.

HIGHLIGHTS

• Bilateral Trade Target: India and Russia aim to increase annual bilateral trade from $65.70 billion in 2023-24 to $100 billion by 2030.
• National Currencies and Digital Financial Instruments: The two countries agreed to develop a settlement system using national currencies and introduce digital financial instruments for mutual settlements.
• Increased Cargo Turnover: Russia will enhance cargo turnover with India through new routes, including the North-South International Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Sea Line.
• Agreements Signed: Nine pacts were inked, including one between Invest India and the JSC “Management Company of Russian Direct Investment Fund,” and another for cooperation in trade, economic, and investment spheres in the Russian Far East from 2024 to 2029.
• Military Spare Parts Production: Both sides agreed to encourage joint manufacturing in India of spare parts, components, and aggregates for maintaining Russian-origin arms and defense equipment. They also plan to set up joint ventures to meet the needs of the Indian military and export to friendly third countries.
• Nuclear Power Cooperation: They confirmed their intention to broaden cooperation in nuclear power, including support for the Kudankulam Nuclear Power Programme.

The joint production facilities in India aim to address supply chain challenges and expedite the supply of critical military spare parts through joint venture partnerships.