On February 25, 2025, the Valdai Club presented a new report, titled “Russia - India: Formula for Economic Cooperation.” Moderator Ivan Timofeev noted that the report demonstrates the leap that has occurred in the economic cooperation between the two countries.
Lydia Kulik, the author of the report, Head of the Indian Studies Department at the SKOLKOVO School of Management and Senior Researcher at the Centre for Indian Studies at the Institute of Oriental Studies of the Russian Academy of Sciences, emphasised that in her work she considered it necessary to deepen the analysis of traditional areas of cooperation, paying primary attention to nuclear energy, oil, LNG, the Arctic, coal, and fertilisers.
“In each of these areas, on the one hand, there is a large baggage of accumulated experience, on the other hand, there is always something new,” she noted. Kulik called the topic of the transition from transactional interaction to long-term agreements very important for Russian-Indian relations. This applies, for example, to oil supplies and fertiliser supplies. According to her, there are long-term contracts that can ensure competitive prices, which is especially important for India. Kulik believes that optimism and patience are the keys to successful cooperation between Russia and India.
Alexander Rybas, Trade Representative of the Russian Federation in the Republic of India, called the report "detailed" and "comprehensive." He acknowledged that objective circumstances can both act as catalysts for the development of Russian-Indian relations and slow them down. Speaking about India's economic policy, he identified three of its main pillars: the market nature of the Indian economy, attention to the social component, and the pragmatism of the government's course of action, which is based on programme-targeted development methods. Rybas added that against this background, the state, through its regulation methods, is actually helping in the development of economic relations.
Gulshan Sachdeva, Jean Monnet Professor at the School of International Studies at Jawaharlal Nehru University, said that the report sets the framework for Russian-Indian economic relations, which are currently developing dynamically. Many large Indian companies have now discovered Russia, but they lack details and specifics – and in this sense, the report is especially important, as it provides an understanding of where to go and how to overcome a number of emerging difficulties. Academics and experts from both sides should disseminate knowledge in order to promote a positive outlook on Russian-Indian relations. “There is a strong political will to take these relations to the next level,” Sachdeva emphasised.
“Russia and India have a long-standing friendship. This is one of the few constants in a changing world. Once we become friends, we remain friends forever,” said Apurv Kumar Mishra, Consultant at the Economic Advisory Council to the Prime Minister of India. In the era of multipolarity, expectations from Russian-Indian relations, which have always been high, are growing even more. In the next few decades, India will remain one of the drivers of economic growth in the world, and in this context, it will need cooperation with Russia and Russian resources, including energy. Another promising area of cooperation is the joint development of infrastructure projects both in Russia and India. In addition, we should not forget about transport corridor projects and connectivity.
Marсel Salikhov, Director of the Centre for Economic Expertise at the National Research University Higher School of Economics, analysed the energy dimension of relations between Russia and India. Since 2022, the volume of mutual trade between the two countries has grown significantly, relying on energy exports from Russia. However, this was an indirect consequence of the decisions of other countries, and as a result, the volume of mutual trade increased, but it was not balanced. Meanwhile, when trading in national currencies, balance is especially important. A flow of goods from India to Russia is needed, and in this context, the recommendations of the report are relevant. The second important question is how to stabilise the achieved level of trade so that in the long term it does not decrease again.
