Russian President Vladimir Putin has affirmed intentions to set up manufacturing operations in India during the 15th VTB Russia Calling Investment Forum, emphasizing the profitability of investing in the country. This move follows Rosneft's substantial investment of $20 billion in India, highlighting the commitment to strengthen economic ties between the two nations. Putin's forthcoming visit to India, amid ongoing diplomatic and trade discussions, marks a significant step in furthering bilateral cooperation, particularly in the oil and energy sectors.
The friendship between India and Russia, rooted in historical ties from the Soviet era, has evolved into robust diplomatic and defense relations. Despite international tensions over Russia's conflict with Ukraine, the countries have maintained a strategic partnership, with India refraining from overtly criticizing Russia and advocating for diplomatic resolutions. This has been evident in India's increased imports of Russian oil, positioning Russia as the leading oil supplier over Iraq due to competitive pricing and strategic interests, which has caused concerns among Western nations.
In efforts to boost bilateral trade, both countries aim to increase trade volume to $100 billion by 2030, building on the nearly doubled trade of $65 billion in 2023 primarily driven by India's oil imports. Russian oil firms like Rosneft have been actively engaged in collaborations with Indian companies to explore opportunities in oil production, refining, and trading, showcasing a deepening partnership in the energy sector. The shared goal of enhancing trade relations underscores the mutual interest in expanding economic cooperation and fostering stronger ties between Russia and India.