After Russia’s attack on Ukraine, India’s stand on the international stage so far is being described as negligent and straightforward. Notably, India has refrained from voting twice in the United Nations Security Council. This is being seen as an attempt to strike a balance in a diplomatic manner. Actually, this war is also being considered as a test of India’s relations with Russia, America, China and all European countries. On the economic front, there are signs of increasing challenges due to the decline in the stock market. India has close ties with both Russia and the US in defense deals. Ukraine has been a favorite destination for Indian students to study medicine. India’s imports and exports are also being affected to a great extent by the war.
India America relations
In the midst of the Ukraine crisis, a remark by the President of America has raised a wrinkle at the diplomatic level. When US President Joe Biden was talking to reporters at the White House after the Russian attack, he commented on a question that his differences with India regarding defense ties with Russia are not yet resolved and talks are going on. Is. He was asked questions about India’s defense deals with Russia, especially the S-400 missile defense system. In his reply, Biden indicated in few words that America is not much satisfied with India’s stand.
In fact, India is talking about diplomatic level talks and restoration of peace on Ukraine crisis. According to External Affairs Minister S Jaishankar, what is happening in Ukraine is related to the expansion of NATO and Russia’s relations with the West in the post-Soviet era. The kind of statements India made in the Security Council were considered in favor of Russia. Russia has welcomed this stand of India.
India-Russia Relations
India’s closeness with Russia has been troubling the US. Putin visited India in December last year, in which several defense agreements were signed between the two countries. After that India confirmed that Russia has started supply of S-400 surface-to-air missiles. The supply of S-400 missiles is being considered as an important step towards modernizing the Indian Army. The agreement reached in the year 2018 is worth more than five billion dollars, but the sword of America’s displeasure is still hanging on it.
The US has considered this agreement objectionable under a law called ‘Countering America’s Adversaries Through Sanctions Act’ (CATSA). Under the CATSA, Russia has been placed along with North Korea and Iran in the list of countries which the US has described as its enemy. The reasons for this have been attributed to Russian activities such as Russia’s actions in Ukraine, interference in the 2016 US elections, and aid to Syria.
India’s dependence on Russia
India has relied on Russia’s cooperation in the dispute with Pakistan over the Kashmir issue and veto in the Security Council. When Pakistan Prime Minister Imran Khan reached Moscow during the dispute with Ukraine, India kept a watchful eye. Putin’s meeting with Imran Khan lasted for about three hours. At the diplomatic level, it is believed that the Ukraine war has created new challenges for India not only in Kashmir but also in the ongoing dispute with China. Both Pakistan and China are on the side of Russia. In such a situation, staying outside India is being considered a better option than voting in the Security Council.
India and Russia have set a target of taking mutual trade to $30 billion by 2025. India is also heavily dependent on Russian oil and gas. India accounts for 0.2 percent of the total export of natural gas from Russia. India-Russia signed an agreement to extend cooperation in military technology for the next decade. In addition to defense and energy resources, an agreement has been signed for big cooperation in the field of space science. Under the Gaganyaan mission, there is a plan to send three Indians to space by 2022, for which the government is spending more than 10 thousand crore rupees. The reason for the war is now likely to affect the Gaganyaan mission as well.
Business relations with Russia and Ukraine
The trade between Russia and India is now very less. India exports 0.8 percent of its total goods to Russia. Russia’s share in India’s total imports is only 1.5 percent. Business relations between India and Russia have declined by 17 percent in the year 2020. On the other hand, there is also not much trade between India and Ukraine. India only imports edible oil on a large scale from Ukraine. Ukraine accounted for 74 per cent of India’s total edible oil imports last year. Apart from this, the import-export of plastics and polymers is also on a large scale. Many big Indian companies like Ranbaxy, Dr Reddy Labs and Sun Group have business in Ukraine.