Article in Kommersant Newspaper 10 December 2014


Vladimir Putin opens new India Kommersant, 10.12.2014 By Sergey Strokan

President RF Putin is going to pay a visit to India, which will act as a turning point in relations between the two countries, specified as privileged strategic partnership. Recent power change in India and Western sanctions introduced against RF create a background for rapid renewal of business contacts of both countries. Key assignments will be cooperation in defense, nuclear, energy diamond industries as well as in big infrastructure projects. In the context of policy of Russia turning East India will become the second partner of Moscow in Asia-Pacific region. From India with detail the Kommersant reporter, Sergey Strokan.

As opposed to the previous summit in Delhi two years ago which lasted for six hours, current meeting of two countries leaders will be more informative.

According to Russian diplomatic recourses reporting to the Kommersant on Thursday Delhi will witness talks both in close and expanded composition of participants. It is also expected that Vladimir Putin for the second time will address both Chambers of the Parliament no global leader ever had chance to do it before.

One of the reasons for bilateral talks rebooting was the fact that within last two years the parties were able to compromise on the most complicated questions.

Besides, this year both Moscow and Delhi face critically new situations encouraging revival of business ties.

After nationalistic Bharatiya Janata Party has won Parliament elections in May, the Government of Narendra Modi took the power in India, setting its ultimate target to resume economic growth rates, realization of big scale infrastructural projects, planning to construct 30 nuclear power plants, as well as establishing a net of smart cities and business corridors, which needs billions of investment.

The new strategy of Indian economics development, called Make in India announced by Modi will help to reach that targets. The major focus will be made on attracting new external investors, who will get maximum comfortable conditions.

We expect foreign producers to rush to India, considering that we have all recourses necessary for it, as well as workforce. Russia can become one of the countries to meet this target, - clarifies Nirmala Sitharaman, Indian Minister of Industry and Trade to the Kommersant.

For Moscow revival of business relations with the third Asian economy becomes a part of the overall turn to the East, accelerated with the introduction of sanctions against Russia. "Until recently, it was considered in the region that Russian policy in Asia is reduced to an increasingly closer rapprochement with Beijing. Putin's visit to Delhi should show the misconception that Moscow in Asia stands on "Chinese leg" only. The second business partner in the future should be India, "- Rajiv Sharma, an Indian analyst said to the Kommersant.

Reportedly, the problem of the two countries in the new stage will be set forth in the political statement "Strategic Vision" signed by the leaders of the Russian Federation and India. This "road map" of the Russian-Indian partnership in the coming decade will mark among the priorities of cooperation in the nuclear industry and the military-technical sphere.

Major projects in the field of military-technical cooperation stay the same: the creation of a hypersonic cruise missile BrahMos-2, as well as joint production of fifth generation fighter aircraft (including the placing in military markets of South and South-East Asia). As explained by the interlocutors to the Kommersant in New Delhi, the defense industry - is one of those where cooperation in the framework of the Make in India has the greatest prospects.

Though in atomic energy field, despite the expected intensification of competition, between Russian and Western nuclear scientists in the struggle for the Indian market, the Moscow still has the priority. "While Western companies have not even hammered a peg on construction sites for future nuclear power plants in India, we now have such a strong backlog as NPP "Kudankulam"," Alexander Kadakin, the Russian Ambassador to India said to the Kommersant.

Another promising direction should be cooperation in the diamond industry. Since 2009, it began to develop on the basis of long-term direct contracts with Indian companies-cutters. During the visit of Vladimir Putin ALROSA is expected to sign several new agreements.

Visit of the President of the Russian Federation has caused a surge in New Delhi debate on who should become the major foreign policy partner - Russia or the United States. "Narendra Modi has managed to put aside traditional doubts and objections in India about friendship with the United States. It is clear for him that the main international partner for India is America, not Russia, "- said Karan Thapar, The Hindustan Times analyst. According to him, this is confirmed by the recent triumphant visit of the Premier to the United States and invitation that India sent to President Barack Obama, asking him to become the chief guest at the celebration of the national holiday the Republic Day, to be celebrated on January, 26. 

However, Arun Mohanty, director of the Center for Russian and Asian Studies at the University named after Jawaharlal Nehru does not agree with the statement. "The intrigue in the fight of world powers for India still stays there. Vladimir Putin will arrive in Delhi month and a half ahead of his US counterpart; - Arun Mohanty said to the Kommersant and reminded: - Obama will only become the chief guest at the Republic Day, Putin has already been awarded this honor.