Let There Be Trade! India Quickly Becoming Russia’s Most Significant Partner in South Asia

India is becoming one of Russia's most significant partners. It's no surprise that their relations are defined as a privileged strategic partnership of the highest level. India's economy is developing faster than any other economy in the world. The country's population is increasing so rapidly that it'll soon surpass China's. Today, India has the third highest GDP based on purchasing power parity. Along with its economic achievements, the country's international heft is growing, too. India has become a serious international policy-maker along with Russia, China, the US, and Europe.

Russians and Indians are traditionally sympathetic towards each other. For instance, the Free Spirit Festival has been taking place in Moscow's VDNKh since Saturday. The event will continue until next Sunday, and admission is free.

 

After careful consideration, the Directorate of the Russia Channel's Vesti News Program is opening a new permanent news bureau in India. Dmitry Melnikov, a talented journalist and our colleague, is in charge. Previously, Dima had long-term assignments in London and Tokyo.

And now, the first-ever report by the Head of our Indian news bureau, Dmitry Melnikov.

Here, in Rajasthan, is where the great Indian desert begins. It's 45°C (113°F), and the heat haze is all around. The west wind is bringing sand dust. Despite the weather, Indian farmers harvest their lands twice a year here. They call it collective farming. The "Made in the USSR" signs are all over the Suraghart State Farm's service shop. Seven years after India had become independent, Nikita Khrushchev visited here, and later gifted the developing country the best Soviet machines and equipment available. Five batches of farming machinery and equipment had been delivered to this research farm in Rajasthan from the Soviet Union. Five cargo ships, filled to the brim, had delivered it to Mumbai (previously Bombay), and then the merchandise was transferred here by train. These Soviet machines have been operating every day for six decades. They are currently in a museum, perhaps, still in working condition. Every machine is working here now as well. We barely convinced the staff not to start this UAZ cue car. Back in the days, Soviet and Indian leaders rode around in it while inspecting farms.

"Nikita Khrushchev, our first PM Jawaharlal Nehru, and Indira Gandhi rode this car around our farm".

This historic visit to India defines the beginning of Soviet aid to the friendly Indian nation. Soviet experts built factories and hydroelectric power stations here. This is the New Delhi headquarters of the agroholding that owns the Suraghart State Farm. In the late 1950s, this is where Indians had assembled the Soviet gifts of combine harvesters and grain separators.

Vinod Kumar Guar, the CEO of a national seed-production corporation: "This used to be all desert; it was hard to imagine one of the most successful farms in India here. Of course, our agricultural relations were much closer back in the day. I want to believe we'll restore the same level of relations eventually".

Nowadays, Indo-Russian bilateral trade barely reaches $10 billion. This is a critically low number for two of the world's largest nations. Moscow and Delhi plan to triple this number in the next two years. However, trade has never stopped. The Indians call this place the "Russian Bazaar in Delhi".

In the 70s and the 80s, simple Soviet appliances were exchanged for leather and precious stones here. The now-second generation of salesmen has spoken fluent Russian since then. Customers from former Soviet countries also communicate with them in Russian.

This is one of New Delhi's symbols, the India Gate. It's a war memorial to the thousands of Indian soldiers who had fought in the early 20th century. In the 21st century, India is opening its doors to foreign technologies and investments, and Russia is getting in on the action posthaste. Last year, after the two leaders' meeting, Indian PM Modi established "Russia Plus," a dedicated Russian department in the foreign investments agency. Its main task is to provide an environment for assisting Russian companies and investors.

Deepak Bagla, MD & CEO, Invest India: "Before, the mutual investments would go towards the traditional 6-7 economic sectors. However, we've seen new fields of cooperation over the past few years. For instance, the production of electronic systems, the development of railroads, mass media, communication, and many others."

For now, the most tangible field of cooperation is the defense industry. Russian equipment makes up 80% of the Indian Navy and 70% of the Indian Air Force. Since the mid-twentieth century, the USSR and then Russia have delivered over $65 billion worth of military equipment to India. Together, Russia and India are developing BrahMos, a ramjet supersonic cruise missile. They're also working on a fifth-generation fighter and the licensed production of Su-30 jets and T-90 tanks. Oil, gas, and peaceful nuclear development are yet another field of cooperation. Earlier, the first LNG tanker had arrived in India. In the state of Tamil Nadu, the construction of the Kudankulam nuclear power plant continues.

India's experienced farmers remember how they used to plow the soil before and after Soviet assistance. They had switched from oxen to reliable tractors. It's no surprise that a list of Soviet experts who facilitated the development of Indian agriculture hangs on the wall before this shrine to Vishvakarman, the divine engineer of the universe.

Tara Singh, former engineer at the Suraghart State Farm: "I personally remember how hard farming was before the USSR had offered to help. I remember a Soviet expert, Ivan; he used to work with us. He was able to customize the equipment for our extreme climate. Thanks to the USSR's assistance, we're now able to cater to all Indian states".

India's rainy season starts in one month. It's an important event for Rajasthan's farmers. Six decades ago, they had revived this desert with the USSR's help. Just like the rest of India, locals never forget who made this harvest possible.

Dmitry Melnikov, Ivan Malyshev, Vesti News of the Week from India.