РУССКИЙ
11:14 26.01.2025 •
By Alexander Gasyuk, special for «International Affairs» magazine[1]
On January 26 India which is rapidly transforming into one of the world's leading powers will celebrate Republic Day. On the eve of this important Indian national holiday Ambassador of the Republic of India to the Russian Federation H.E. Mr. Vinay Kumar laid out his vision on the prospects of growing and strengthening Indian-Russian cooperation in many fields. Head of the Indian diplomatic mission to Russia also explained what does sovereignty mean for modern India, what is New Delhi take on BRICS and how India views unlawful anti-Russian sanctions imposed by the WEST. This as well as tourists flows from Russia to South Asian Republic, prospects for accepting MIR payment system cards in India and many other important bilateral issues were subjects of exclusive and extensive interview.
Q. We are talking on the eve of India’s national holiday – 76th Republic Day which will be celebrated on January 26. On that particular day in 1950 the Constitution of independent and sovereign India was enactment. What does sovereignty or Purna Swaraj (complete self-rule) mean today for your country that has come a long way from great ancient civilization to longtime Western colony to one of the locomotive of the modern global economy?
Vinay Kumar. When India attained freedom from colonial rule on 15th August 1947, we did not have an instrument of governance of our own. It was on 26th January 1950 when the Constitution of India was enacted transforming India into a Sovereign Democratic Republic. Since then we celebrate 26th January as the Republic Day of India.
Sovereignty or Purna Swaraj (complete self-rule) in today’s India goes far beyond the political independence achieved in 1947. It symbolizes the nation’s ability to preserve its core civilizational values while also adopting modernity. It also requires us to be economically self-reliant but at the same time also partner with countries for global prosperity. This journey reflects India's evolution from an ancient civilization to overcoming colonial subjugation and emerging as a dynamic force in the global economy.
Prime Minister Narendra Modi once remarked that India’s sovereignty is rooted in its ability to chart its course independently, grounded in the principles of its Constitution while embracing modernity. He highlighted initiatives like "Atmanirbhar Bharat" (Self-Reliant India) as pivotal in ensuring that India stands on its own feet while contributing to global prosperity.
In the global context, sovereignty means India's ability to assert strategic autonomy in international relations while contributing to global peace and prosperity. In essence, Purna Swaraj today signifies a self-confident, self-reliant India that respects its rich heritage, upholds democratic ideals, and actively contributes in dealing with the global challenges facing the world.
Q. India and Russia historically have had friendly and mutually trusted relations. As well known, today our countries are bound by especially privileged strategic partnership. Is New Delhi satisfied with current level of Indo-Russian relations? And is there any unlocked potential in bilateral ties that can and should be tapped?
Vinay Kumar. India and Russia have historically shared a robust and mutually beneficial relationship, characterized by deep-rooted trust and cooperation across various sectors. This bond has evolved into a Special and Privileged Strategic Partnership, reflecting the depth and significance of our bilateral ties.
During the 22nd India-Russia Annual Summit held in July 2024 in Moscow, our leaders positively assessed the multifaceted bilateral relation, encompassing political, strategic, security, trade, investment, energy, science and technology, nuclear, space, cultural, educational, and humanitarian domains. They acknowledged the active exploration of new avenues for collaboration while strengthening traditional areas of partnership.
Be that as it may, there remains significant untapped potential particularly as Russia is redirecting its attention towards Asia. Deeper economic cooperation between India and Russia has a stabilizing consequence for the global economy. Enhancing Indian exports to Russia in sectors like pharmaceuticals, agriculture, and textiles will help correct the current trade imbalance. Indian skilled workers, especially in IT, healthcare, and engineering, can address labor needs in Russia and deepen collaboration. Expanding energy cooperation through more of investments is another priority. The connectivity potential of the partnership also holds great promise.
To summarize, while India is content with the current trajectory of its relations with Russia, both nations recognize the vast potential to further enhance their partnership.
Q. The Kremlin has recently acknowledged preparations for forthcoming visit by Russian President Vladimir Putin to India. What are your expectations regarding this development?
Vinay Kumar. Prime Minister has invited President Putin to visit India for the 23rd India-Russia Annual Summit. President Putin has accepted the invitation. As is the usual practice, mutually convenient date for the visit will be decided through diplomatic channels. At an appropriate time when the date is decided, we shall share with you.
In the meanwhile, we continue our work to expand and strengthen the various facets of our bilateral relation in all areas, including political, security, defence, trade and economy, science & technology, culture, and people-to-people ties.
Q. During recent visit to Russia by Indian PM Narendra Modi in last July it was announced that New Delhi and Moscow intend to boost volume of bilateral trade to more than $100 billion by 2030. Do you think that is feasible? What areas of traditional cooperation look particularly promising to you (energy, agriculture, technology, pharmaceuticals, investments, space and military cooperation, etc.)?
Vinay Kumar. Achieving $100 billion in bilateral trade between India and Russia by 2030 is an ambitious yet attainable goal. Our trade relations have been growing rapidly, with bilateral trade already reaching more than $60 billion as of 2024 - a fivefold increase in just five years. This growth momentum is expected to continue, driven not only by cooperation in the traditional areas like energy, but also in the sectors such as agriculture, pharmaceuticals, textiles, including through mutual investments.
We are committed to diversifying our trade portfolios and exploring new opportunities for collaboration. With the Indian government's focus on "Make in India" and Russia's emphasis on import substitution, there are significant prospects for cooperation in areas like manufacturing, technology, and innovation. I am confident that our bilateral trade will continue to grow, driven by the strong foundation of our strategic partnership and the mutual interests of our business communities.
Q. One of the main roadblocks in achieving this goal ($100 billion turnover) is unlawful Western sanctions that target Russian energy sector with export price ceiling and put constrains on Russian oil tanker fleet. Since India consumes large quantity of Russian crude oil export to what extend abovementioned restrictions including the latest bunch of US sanctions on Russian energy companies and maritime logistic affect Indian refineries and oil traders? What is New Delhi’s take on that issue?
Vinay Kumar. For India, energy security is of prime consideration. As our Minister for Petroleum and Natural Gas said recently that we need to ensure steady availability, affordability and sustainability of energy for our 70 million citizens who visit a petrol pump every day. Crude oil from Russia plays an important stabilizing role in the global energy market. We are closely monitoring the situation and engaging with all relevant stakeholders to ensure that our energy imports from Russia and bilateral trade relations remain unaffected.
As we move forward, we will continue to engage in open and constructive dialogue with all parties involved to promote our shared interests and foster a stable and predictable trade environment.
Q. One of the possible ways to avoid negative and disruptive impact of Western sanctions is further switching to national currencies – ruble and rupee – in payments and creating independent digital financial infrastructure and legal framework for bilateral trade. Could you highlight any progress in that particular field?
Vinay Kumar. Both India and Russia continue working together to promote mutual settlement of trade in our national currencies. Special Rupee Vostro Accounts are right now an effective mechanism. There is also an ongoing consultation for interoperability of our financial messaging systems.
However, we need to work on addressing the trade imbalance by increasing Indian exports to Russia. Going forward, a better trade balance combined with national currency settlements could become a sustainable solution.
Q. On geopolitics. Russia and India are founding members of BRICS, which promote multipolar world. To your mind, what is the main added value of this fast growing multilateral platform of Global South?
Vinay Kumar. The world currently is undergoing a significant economic, political and cultural rebalancing, to the extent that one can contemplate real multi-polarity. Understandably, BRICS has the potential to positively contribute in global stability while also steering the rebalancing towards a multi-polar world. Role of BRICS in proactively pushing for global governance reforms is also noteworthy.
India hosted the 3rd Voice of Global South Summit in August 2024 and is making a continuous effort in putting the voices of these countries on the global stage. The Voice of Global South Summit is an extension to the international arena of India’s philosophy of Vasudhaiva Kutumbakam, or "One Earth, One Family, One Future”. BRICS must also give primacy to the hopes, aspirations and expectations of the countries of the Global South. In 2023, countries of Africa were integrated into BRICS. Under Russia’s Presidency in 2024, several countries of the Global south have become BRICS’ partner countries. BRICS can also play a key role in fostering economic growth of the countries of the Global South, including through its efforts on trade facilitation in agriculture, resilient supply chains, e-commerce and Special Economic Zones.
Q. India is most populated country in the world with its 1,5 billion people. In the same time Russia – the biggest country in the world – due to the demographic issues faces shortage of qualified workforce. Do you see any overlapping potential in that area that can be exploited for mutual interest?
Vinay Kumar. Indeed, the demographic dynamics between India and Russia present a unique opportunity for mutual benefit. With India's vast pool of educated professionals, especially in fields like IT, engineering, and healthcare, we can help address Russia's workforce shortages.
We believe that by simplifying procedures and ensuring a safe, secure, and orderly manner for Indian workers to come and work in Russia, we can unlock significant potential for cooperation. Both sides are actively discussing the signing of a Memorandum of Understanding on Migration and Mobility Partnership Agreement (MMPA) to facilitate the orderly flow of skilled and professional workers from India to Russia.
This agreement will provide a structured framework for workforce exchange, educational collaboration, and technology transfer, ultimately enhancing our bilateral ties and addressing the workforce challenges faced by Russia. We are confident that with the necessary facilitation and cooperation, India can match the potential demand in Russia, creating a win-win situation for both nations.
Q. India as one of the fastest growing world economies is interested in creating new export routes to ship its goods and commodities to the global markets. What is India’s approach to developing transit corridors like North-South, Chennai-Vladivostok and NSR?
Vinay Kumar. Yes, India is actively pursuing the development of several transit corridors to enhance its export capabilities and strengthen trade relationships globally. The INSTC opens up new markets for Indian goods and is expected to increase bilateral trade volumes across these regions.
The Chennai-Vladivostok corridor has recently become operational, significantly reducing shipping time between India and Russia from over 40 days to approximately 24 days.
India has a significant stake in the Arctic and more specifically in trade through the NSR. India and Russia have discussed about Northern Sea Route (NSR) and both sides have agreed that Indian seafarers will be trained on Polar and Arctic waters at the Russian Maritime Training Institute in Vladivostok, equipped with simulators. These initiatives are part of India's broader Maritime Vision 2030, which seeks to modernize its maritime infrastructure and increase its global shipping capacity
Q. As you may have noticed Russian private companies are becoming more and more interested in vast Indian market and Russian business people try to educate themselves about peculiarities of doing business in your very diverse country. In what way Indian diplomatic and commercial missions in Russia facilitate contacts between businesses?
Vinay Kumar. Indian diplomatic and commercial missions in Russia play a crucial role in this regard. For instance, “The Indian Business Alliance”, supported by the Indian Embassy, organizes events like Indian-Russian Business Dialogue, which serves as a platform for business leaders to forge ties.
We also offer valuable insights into the Indian market, helping Russian businesses understand local regulations, cultural nuances, and consumer preferences.
Through organized meetups and trade fairs, we help establish relationships that can lead to joint ventures and partnerships. Bilateral trade delegations, buyer sellers meets and the India-Russia Intergovernmental Commission for Trade, Economic, Scientific & Cultural Cooperation (IRIGC-TEC) also facilitate regular dialogue on economic issues and promote strategic partnerships across various sectors.
Q. What are the most promising niches for Indian business and investments in Russia to your mind?
Vinay Kumar. India has several promising niches for business and investment in Russia, particularly in sectors such as pharmaceuticals, IT, consumer electronics, automobiles, textiles, rare earth elements, agribusiness, shipbuilding and renewable energy.
The ongoing collaboration in the oil and gas sector, coupled with rising demand for pharmaceuticals and IT services, presents significant opportunities. The exit of Western firms from the automotive market has also created a gap that Indian manufacturers seek to fill.
With a growing middle class in Russia seeking diverse products, Indian businesses seek to leverage their strengths to enhance trade and investment between the two countries.
Q. My friends have just visited India for long New Year’s holidays as tourists and had spent in your country almost two weeks. It was their first time and they were really excited by truly «Incredible India». Unfortunately, due to the abovementioned Western sanctions they were unable to pay with Russian banking cards MIR while in India. Should we expect this problem to be solved and MIR payment system to start working in India?
Vinay Kumar. The issue of accepting Russian MIR banking cards in India is under active discussion, with prospects for resolution appearing positive. Indian diplomatic and commercial missions are facilitating negotiations between India and Russia to establish mutual acceptance of the MIR payment system alongside India's RuPay cards.
Recent meetings, including those of the IRIGC-TEC have focused on creating a framework for this collaboration. If successful, this would enable seamless transactions for Russian visitors in India and vice versa, thereby easing the limitations imposed by Western sanctions on Russian financial systems.
Q. And what can you say generally about current tourism flows between our nations? What could be done to attract more Russian and Indian visitors to our respective countries?
Vinay Kumar. Tourism flows between India and Russia are currently on the rise. Business and work-related travel are significant drivers of this growth, with India ranking third among non-CIS countries for Russian business tourists in early 2024.
Apart from Delhi and Mumbai, the hubs for Russian business tourists, other destinations for Russian tourists in India include Goa, Kerala and Uttarakhand which offer wellness tourism and heritage sites as well. This growing tourism exchange positively impacts both economies by generating revenue and fostering cultural ties.
To attract more visitors from both countries, enhancing and promoting cultural experiences and implementing targeted campaigns showcasing tourism sites and places could be effective.
Q. Russia represents popular destination for Indian students seeking qualified higher education. How many Indian nationals are currently studying in Russian Universities and colleges? Are there any plans to expand bilateral academic, culture and humanitarian exchanges between our countries?
Vinay Kumar. Presently, about 27,000 Indian students are pursuing their education in various universities across Russia. Out of these students, about 95% are pursuing their studies in medicine. The others are engaged in the academic field of aviation & space technology, engineering, sciences, mathematics, economics, humanities, social sciences, journalism, languages etc.
Leading universities on both sides need to further incentivize to have structural mechanism for academic mobility of students, researchers and scholars through various exchange programmes and joint research projects. In this context, formation of India-Russia Research centres, joint education and scientific programmes dual degrees and similar measures would serve an important platforms. A number of Russian universities / institutes have already approached institutes / universities in India for various collaborative ventures. Recently (December 2024) signed a MoU for establishing of ICCR - Hindi Chair for 2 years in the Kazan Federal University. Russia is keen on strengthening Hindi language programmes in collaboration with Indian institutes / universities. Russian scholars in Indology have evinced keenness in strengthening ties with their Indian counterparts.
Q. Last, but not least. You assumed your current position of Indian Ambassador to Russia in April 2024 and apparently did not have much time to adapt and relax. There is expression in Russian language – "From the ship to the ballroom" (С корабля на бал). And obviously it was your case: last summer Indian PM paid official visit to Russia, last autumn historic BRICS summit took place in Kazan, high level Indian and Russian officials are constantly flying back and forth and now preparations are ongoing for Russian leader trip to New Delhi. So bilateral agenda is very, very rich. In the framework of such busy schedule do you have any spare time to explore Moscow or Russia? Did you have a chance to travel throughout Russia with members of your family? Are there any Russian places that really impressed you?
Vinay Kumar. The past nine months in Russia have been quite eventful for the reasons you mentioned. However, it’s impossible not to be captivated by the country’s rich history, architecture, and culture. Moscow itself is truly mesmerizing.
I’ve had the chance to travel to St. Petersburg a few times, and the city never fails to impress with its breathtaking canals, historic landmarks, and cultural treasures, including the Hermitage Museum. I also visited Vladivostok to attend the Eastern Economic Forum. During our Defence Minister's visit to Russia in December 2024, I had the opportunity to explore Kaliningrad, which was another fascinating experience. A trip to Tomsk provided me with a unique glimpse into Siberia’s rich history and architecture.
Looking ahead, I am eager to visit Irkutsk and the legendary Lake Baikal, which I’ve heard is a place of extraordinary beauty. Russia’s vastness and diversity ensure that every journey reveals new dimensions of its heritage, culture, and natural wonders.
Thank you Mr. Ambassador for this very interesting interview and let me once again congratulate India on its Republic day!
[1] Mr. Alexander Gasyuk has worked in the International department of «Rossiyskaya Gazeta» since 2008. Has traveled on editorial assignments to the CIS, Europe, Latin America, Asia, the Middle East and North Africa. Worked as a correspondent for «Rossiyskaya Gazeta» in the USA, Greece and Cyprus. He has also been contributing author for the «International Affairs» magazine for number of years.
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