India to Deepen Defence ties with Russia
India is all set to deepen its defence ties with Russia, as the Prime Minister of India is scheduled to leave for bilateral tour of Russia and other Central Asian Countries. During the recent past, India has hiked the Foreign Direct Investment (FDI) in Defence sector by almost 49%, this sudden push in the economics of defence is expected to cement the relationship between the pre-cold war nation and the founding member of non-aligned regime. Following the visit will mark a strategic alliance with India’s old friend.
The current hike in the FDI is expected to pour more investments into India in defence sectors, particularly from Russia. Previous FDI limit of 26% has been a major cause of hindrance for global OEM’s (Original Equipment Manufacturers) from investing in the Indian defence sector.
“By far, Russia is the only trusted partner for India by all means; it stood behind India defending in every aspect”, clarified by Defence experts. However, due to certain geo-political issues, Russia has been isolated by the western countries namely the United States and the United Kingdom. Defence experts notify that, “India should hold up and stand by its old friend and extend complete economic cooperation to it whenever it’s needed”. The oncoming Prime Minister tour should build a strong relationship between India and Russia.
During the recent campaign “Make in India” by the Prime Minister that will pave the path for not just companies located in foreign land, but also leave plethora of opportunities for the Indian companies to rely on indigenization of defence products. This will further boost in India’s goal of being self-reliant and enhance a better relationship with the countries that partner.
The defence trade between India and Russia so far stood at $7 Billion and hasn’t moved any further due to various reasons that clouded between the two nations. Nevertheless, both the countries are coming closer once again to enhance the bilateral defence as well as economic ties.
Since post cold war period, during the collapse of Soviet Union, Indo-Russian trade block was merely a buyer-seller kind of business but it’s eventually evolved into mutual R&D, joint production and marketing of advance defence technologies systems. The Brahmos is the perfect example for this mutual partnership. Furthermore, joint development of fifth generation fighter aircraft and the multi-role transport aircraft, along with license to produce Sukhoi-30 MKI and T-90 tanks in India, are other examples how closely the defence ties are between the two countries.
As suggested with the liberalizations in FDI in defence productions, India should consider building a special economic zone with Russia for all its defence products that can be used for both domestic as well export purpose.
For more information about Defence Sector: www.defence-industries.com
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