India-Russia Relations
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Talks on for logistics deal with Russia
Officials hope to conclude consultations before the Modi-Putin annual summit in October
India and Russia are in the process of concluding a logistics agreement, with both sides targeting to conclude consultations before the annual summit in October between Prime Minister Narendra Modi and Russian President Vladimir Putin.
The proposed agreement follows a series of such agreements India has signed since the first logistics agreement with the U.S.
Draft from Moscow
“A draft logistics agreement has come from Russia. At the end of July, the Ministry of Defence (MoD) had sent it to the Integrated Defence Staff and the three services for their comments,” an official source with knowledge of the matter said.
The Army and Navy have since sent back their observations on the draft. Another official said the agreement with Russia will be on the lines of those signed with the U.S. and France.
“The idea is to increase our operational flexibility and we thought we should do one with our long term partner Russia,” another official source said.
Short timeline
While the consultation process is on, officials are working against time to have the agreement ready by October.
“Drafts are being readied. It is work in progress. Timelines are tight but we will try and aim for the October summit,” the source stated.
India signed the Logistics Exchange Memorandum of Understanding (LEMOA), with the U.S. in August 2016 after a decade of negotiations.
Since then it has concluded several such agreements with France, Oman, Philippines, Singapore and for access to the Sabang port in Indonesia.
Australia too has sent a draft agreement.
Logistics agreements are administrative arrangements facilitating access to military facilities for exchange of fuel and provisions on mutual agreement simplifying logistical support and increasing operational turnaround of the military when operating away from India.
Officials underscored the fact that India and Russia have had deep rooted military cooperation for several decades.
Talks on for logistics deal with Russia
Officials hope to conclude consultations before the Modi-Putin annual summit in October
India and Russia are in the process of concluding a logistics agreement, with both sides targeting to conclude consultations before the annual summit in October between Prime Minister Narendra Modi and Russian President Vladimir Putin.
The proposed agreement follows a series of such agreements India has signed since the first logistics agreement with the U.S.
Draft from Moscow
“A draft logistics agreement has come from Russia. At the end of July, the Ministry of Defence (MoD) had sent it to the Integrated Defence Staff and the three services for their comments,” an official source with knowledge of the matter said.
The Army and Navy have since sent back their observations on the draft. Another official said the agreement with Russia will be on the lines of those signed with the U.S. and France.
“The idea is to increase our operational flexibility and we thought we should do one with our long term partner Russia,” another official source said.
Short timeline
While the consultation process is on, officials are working against time to have the agreement ready by October.
“Drafts are being readied. It is work in progress. Timelines are tight but we will try and aim for the October summit,” the source stated.
India signed the Logistics Exchange Memorandum of Understanding (LEMOA), with the U.S. in August 2016 after a decade of negotiations.
Since then it has concluded several such agreements with France, Oman, Philippines, Singapore and for access to the Sabang port in Indonesia.
Australia too has sent a draft agreement.
Logistics agreements are administrative arrangements facilitating access to military facilities for exchange of fuel and provisions on mutual agreement simplifying logistical support and increasing operational turnaround of the military when operating away from India.
Officials underscored the fact that India and Russia have had deep rooted military cooperation for several decades.
Talks on for logistics deal with Russia
UAWire - Malaysia complains about problems with Russian Su-30 fighters
>“The problem with the Russian planes is the Russian way of doing business… They were supposed to support us for a certain time after we bought the planes, but they don’t disclose everything. In the midst of the purchases, we were not informed of the necessity to have certain types of technical maintenance done 10 years later, which only they [the Russians] are capable of doing,” the official said.
>“Ultimately this means that everything that was bought from America, including the subsequent servicing, was very reliable,” he added.
>“The problem with the Russian planes is the Russian way of doing business… They were supposed to support us for a certain time after we bought the planes, but they don’t disclose everything. In the midst of the purchases, we were not informed of the necessity to have certain types of technical maintenance done 10 years later, which only they [the Russians] are capable of doing,” the official said.
>“Ultimately this means that everything that was bought from America, including the subsequent servicing, was very reliable,” he added.
ALEX GORKA | 30.09.2018 | WORLD / ASIA PACIFIC| BUSINESS
Major Arms Deal Gets Green Light Ahead of Russia-India Summit
The Russian-Indian time-tested partnership has experienced an upward trend in all areas of cooperation in recent years. Last year, the two great powers marked the 70th anniversary of diplomatic relations. The leaders meet regularly and hold phone conversations to discuss acute problems. A very important event has just taken place to bring the two nations even closer.
The Indian Cabinet Committee on Security, chaired by PM Narendra Modi, approved the $6.2 billion S-400 Triumf deal with Russia on Sept.26. It’s rather symbolic that the final decision to purchase the five cutting-edge air defense systems to protect Indian critical infrastructure sites was taken just a few days before the Russian President Vladimir Putin’s visit to India scheduled on Oct.4-5. The Indian government defied the US threats to impose sanctions for buying Russian weapons in accordance with the 2017 “Countering America’s Adversaries Through Sanctions Act” (CAATSA) the way it did to “punish” China for buying the same systems and Su-35 combat planes.
The law allows making a waiver for India but US officials do not guarantee New Delhi will be exempt. It takes a risk by dealing with Russia. India has signed multiple multi-billion deals with US weapons producers. Defense Secretary James Mattis and State Secretary Mike Pompeo tried to talk India out of the S-400 deal during the 2+2 talks in September. Randall G. Schriver, Assistant Secretary of Defense for Asian and Pacific Security Affairs, has warned that a waiver is not a slam dunk decision. Indeed, if an exemption is made, others will demand waivers too, but with no sanctions imposed, the CAATSA will be deprived of any purpose. The US has put itself into an awkward situation and has to make a hard choice.
Russia and India are in talks on the way to make non-dollar payments. They could resort to clearing options, another currency, such as the Singapore dollar, or a go-between based in a third country. The US uses go-betweens to sell arms to the Syrian Kurds.
The two nations have a 60-year history of military cooperation, with Russia being the single largest supplier of hardware. The sides joined together to develop the BrahMos supersonic anti-ship and land-attack cruise missile. India also fields Russia's S-300 air-defense system, and its INS Vikramaditya aircraft carrier is made in Russia and uses Russian aircraft.
The list of Russian weapons used by the Indian military is really long. India is finalizing negotiations with Russia to purchase 48 additional Mi-17-V5 utility helicopters. The agreement on the purchase of four frigates may be signed during the upcoming Russian-Indian October summit. New Delhi also wants to lease a Russian nuclear submarine
Moscow accounts for 62 per cent of New Delhi’s arms imports. The Russian weapons and equipment in the Indian inventory have to be maintained, modernized, and spare parts have to be supplied. India just couldn’t all of a sudden suspend the military cooperation with Russia even if it wanted to. But it doesn’t. It’s widely believed that the S-400s are the best in the world. Nobody else could offer India a system with comparable specifications. And no American sanctions can prevent the great power, such as India, from buying what serves better its national security interests.
The Indian government has been already criticized by opposition for getting too close to the United States. The general elections are in April-May 2019. Signing the deal during President Putin’s upcoming visit will be the right step to win voters’ support. India defies the US sanctions anyway by buying Iran’s oil. New Delhi continued to trade with Tehran during previous rounds of restrictions. The EU, Russia, China, and Iran have recently agreed to create a special purpose vehicle (SPV) to bypass US sanctions against Iran. Russia and India could do the same.
The two great powers are expected to conclude an ‘action plan’ for expanding civil nuclear energy partnership during the upcoming top-level meeting. It will focus on a second site for Russian nuclear plant in the country. Russia’s Rosatom is currently the only foreign investor in India’s civilian nuclear energy sector, with the first two 1,000W units of the Kudankulam power plant already commissioned. The site is scheduled to have six VVER-1000 reactors with an installed capacity of 1,000 MW each. In March, the trilateral agreement was signed by India, Russia and Bangladesh on nuclear energy-related cooperation in personnel training, experience sharing and consulting support.
Russia played a key role in facilitating India’s entry into the Shanghai Cooperation Organization (SCO), or Shanghai Pact, last year. It strongly supports India’s bid for a permanent seat in the United Nations Security Council and the Nuclear Suppliers Group (NSG).
No doubt, the October summit will re-affirm the fact that the traditionally close relationship has been upgraded to a “special privileged strategic partnership” as the world is shifting from a unipolar order to a possible multipolar structure. The decision to purchase the S-400 and defy the US exerting outright pressure proves the Indian government is adamant in its desire to boost cooperation with the old partner and friend.
Major Arms Deal Gets Green Light Ahead of Russia-India Summit
Russians take customers for granted, they did same with India and now when they are kicked out of most deals they talk friendship, remind old days, talk transfer of technology. Why can't they just improve the after sales support and quality of the equipment!
Most Rafale, Eurofighter sales could have been easy pickings for Russia in good old time but they are losing it.
Massive arms package worth over Rs 50,000 crore to be signed during Putin’s visit
This is the first high-level confirmation of the sale of the S-400 missiles which are being negotiated by the two sides for several years.
Disregarding the threat of US sanctions, India is to sign arms deals with Russia worth approximately $ 8 billion dollars (Rs 58,000 crore) during Russian President Vladimir Putin's trip to New Delhi on October 4. The Russian president is to attend the annual summit meeting with Prime Minister Narendra Modi.
"The key feature of this visit will be the signing of the agreement to deliver S-400 air defence systems," Putin's top foreign policy aide Yury Ushakov told reporters in Moscow on Tuesday. "The value of the contract will be more than $5 billion."
This is the first high-level confirmation of the sale of the S-400 missiles which are being negotiated by the two sides for several years.
Negotiations hit a hurdle this year when the US imposed sanctions under the Countering America's Adversaries Through Sanctions Act (CAATSA) on Russia. CAATSA can also be applied to Russia's arms buyers like India.
Last month, China, another major Russian arms buyer was placed under sanctions for buying the S-400 missile systems.
A significant sign of New Delhi's intent to go ahead with the defence relationship was the setting up of a financial arrangement this August for India to pay for its Russian arms purchases in rupees and not in dollars.
Sources in the government told India Today that two other significant deals for four Krivak 1135.6 frigates and the licensed-production of the AK-103 in India, are to be inked during Putin's two-day visit for the 19th India-Russia annual summit.
The four Krivak class frigates are being sold for between $2-3 billion dollars. Two hulls originally completed for the Russian Navy in the Yantar Shipyard in Kaliningrad will be towed to Goa Shipyard Ltd (GSL) where they will be fitted with Ukrainian gas turbine engines and delivered to the Indian Navy. GSL will build two more Krivaks through transfer of technology.
India already operates six Krivak class frigates which were bought from Russia in two batches over the last 15 years.
The plan to license-produce AK-103 assault rifles in an Indian Ordnance factory was finalised during defence minister Nirmala Sitharaman's visit to Moscow this April. The Indian armed forces, police and paramilitary forces have a huge requirement for AK-type assault rifles which are currently being imported. The Indian Army this year indicated a requirement of over 600,000 assault rifles chambered for 7.62x39 mm bullets used by AK-type rifles.
Small numbers of AK-type rifles are being built without a license in state-owned ordnance factories. After the deal is signed during Putin's visit, it is believed that the AK-103 will be license-built in one of three ordnance factories in Trichy, Korwa near Amethi and the Rifle Factory Ishapore near Kolkata.
Massive arms package worth over Rs 50,000 crore to be signed during Putin’s visit
++++
@Hellfire @vstol Jockey @randomradio @Ashwin @Abingdonboy @Himanshu @Milspec
All in all, 3 of the things which shouldn't have happened are now happening:
I don't like it how MoD continues to be utterly protectionist toward state-run enterprises and DPSUs and simply refuses to support private ventures in any way whatsoever. If they continue this practice, then unfortunately it might be the troops in the field that end up paying the price.
This is the first high-level confirmation of the sale of the S-400 missiles which are being negotiated by the two sides for several years.
Disregarding the threat of US sanctions, India is to sign arms deals with Russia worth approximately $ 8 billion dollars (Rs 58,000 crore) during Russian President Vladimir Putin's trip to New Delhi on October 4. The Russian president is to attend the annual summit meeting with Prime Minister Narendra Modi.
"The key feature of this visit will be the signing of the agreement to deliver S-400 air defence systems," Putin's top foreign policy aide Yury Ushakov told reporters in Moscow on Tuesday. "The value of the contract will be more than $5 billion."
This is the first high-level confirmation of the sale of the S-400 missiles which are being negotiated by the two sides for several years.
Negotiations hit a hurdle this year when the US imposed sanctions under the Countering America's Adversaries Through Sanctions Act (CAATSA) on Russia. CAATSA can also be applied to Russia's arms buyers like India.
Last month, China, another major Russian arms buyer was placed under sanctions for buying the S-400 missile systems.
A significant sign of New Delhi's intent to go ahead with the defence relationship was the setting up of a financial arrangement this August for India to pay for its Russian arms purchases in rupees and not in dollars.
Sources in the government told India Today that two other significant deals for four Krivak 1135.6 frigates and the licensed-production of the AK-103 in India, are to be inked during Putin's two-day visit for the 19th India-Russia annual summit.
The four Krivak class frigates are being sold for between $2-3 billion dollars. Two hulls originally completed for the Russian Navy in the Yantar Shipyard in Kaliningrad will be towed to Goa Shipyard Ltd (GSL) where they will be fitted with Ukrainian gas turbine engines and delivered to the Indian Navy. GSL will build two more Krivaks through transfer of technology.
India already operates six Krivak class frigates which were bought from Russia in two batches over the last 15 years.
The plan to license-produce AK-103 assault rifles in an Indian Ordnance factory was finalised during defence minister Nirmala Sitharaman's visit to Moscow this April. The Indian armed forces, police and paramilitary forces have a huge requirement for AK-type assault rifles which are currently being imported. The Indian Army this year indicated a requirement of over 600,000 assault rifles chambered for 7.62x39 mm bullets used by AK-type rifles.
Small numbers of AK-type rifles are being built without a license in state-owned ordnance factories. After the deal is signed during Putin's visit, it is believed that the AK-103 will be license-built in one of three ordnance factories in Trichy, Korwa near Amethi and the Rifle Factory Ishapore near Kolkata.
Massive arms package worth over Rs 50,000 crore to be signed during Putin’s visit
++++
@Hellfire @vstol Jockey @randomradio @Ashwin @Abingdonboy @Himanshu @Milspec
All in all, 3 of the things which shouldn't have happened are now happening:
- S400: Should have gone for the American THAAD system instead, using CAATSA and India's need for BMD as a means of eliciting an offer from US for the system as an alternative to buying S400. Indications are that there was indeed some level of openness with regard to THAAD offer from US, although nothing materialized apparently.
- Batch III Talwar: Should have ordered at least 3 more ships of the indigenous Project-17A class instead. These 3 additional ships should have been built at GSL, this would have the double-benefit of not overwhelming MDL & GRSE with orders, and at the same time, bring up a 3rd shipyard in the country capable of constructing main surface combatants. The P-17A would have allowed an unprecedented level of networked operational capability with the other MFSTAR-equipped ships of IN...sadly the Russian-origin frigates (including the existing 6 Talwars) will not be able to work as a coherent group with IN's leading crop of surface ships of tomorrow (destroyers, frigates, carriers, LHDs etc.)
- AK-103: I'm as of yet uncertain whether this deal for licensed production covers the Army's stated need for 650,000 rifles of this caliber, or if this is more of a general requirement needed by the various Police & Paramilitary units. Either way, it's bad. First because this will facilitate the Ordnance Factories to continue their monopoly of the small arms production business, and second, because there are better weapons, even within the stated 7.62x39mm requirement, such as the IWI Galil ACE-32, the AK-Alfa from Kalashnikov Israel, or the Gilboa M43 also from Israel. Unfortunately, the JV that Punj Llyod struck with IWI doesn't look it's going to pay off. They failed to get the contract for FTP rifles, and if they fail the contract for infantry rifle as well, it's pretty much game over for them.
I don't like it how MoD continues to be utterly protectionist toward state-run enterprises and DPSUs and simply refuses to support private ventures in any way whatsoever. If they continue this practice, then unfortunately it might be the troops in the field that end up paying the price.
Not at all. The S-400 is better than THAAD for what we need. Even the Americans confirmed that they do not have an S-400 equivalent to offer. THAAD is simply BMD, we already have that with the PDV. Check the links I've posted in the S-400 thread.
The new Talwars are sorely needed. We are short of many frigates and GSL is not capable of building the bigger P-17s.
The AK-103 is a bit sketchy. Let's see what this deal is about. I think there will be a separate deal for 7.62x51mm rifles for the infantry. And the new carbines will also go to the private industry.
Informative article regarding payment issues
Ballet with the Bear
Russian president Vladimir Putin flies into New Delhi in his customised IL-96 jet on October 4 to participate in the 19th instalment of what will be one of the most closely watched Indo-Russian summits. Geopolitical shifts this year have fuelled such uncertainty-India's perceived tilt towards the US after a recently concluded 'Two Plus Two' dialogue in New Delhi last month and the prospect of US sanctions being applied to India if it buys Russian defence equipment. This would explain why New Delhi is currently working out the modalities of what will be a vastly symbolic photo-op during President Putin's visit-the gift to Russia of a flight-worthy Indian-built MiG-21 during the 19th Indo-Russian Summit on October 5.
The gift will evidently convey what defence minister Nirmala Sitharaman recently called India's "time-tested relationship with Russia". Beginning 1964, over 1,200 of these iconic jet fighters were bought from the former Soviet Union after India's attempts to buy similar missile-armed supersonic aircraft were rebuffed by the US and UK. In a geopolitical quirk, the Russian air force never inherited any of the Soviet air force MiG-21s after the Soviet Union's break-up in 1991 as they were stationed in the CIS countries. Russia, meanwhile, continued the Soviet Union's legacy of being India's largest supplier of military hardware.
India is to gift Russia an Indian-built airworthy MiG-21, a jet which the Russian air force itself has never operated
This year, India has argued hard with its new-found strategic partner, the United States, about the need to keep its Russian arms pipeline open in the face of CAATSA (Countering America's Adversaries Through Sanctions Act), the US sanctions directed against Russian arms firms. India could be the target of secondary sanctions though the US National Defense Authorization Act (NDAA) passed this August gives President Donald Trump the power to grant waivers. Meanwhile, in quiet negotiations with Russia between July 2 and 5 this year, Indian ministry of defence (MoD) officials worked out a new financial arrangement to protect the existing defence contracts from US sanctions by paying for arms in rupees rather than dollars.
US officials have warned against the impending sale of the Russian S-400 air defence missile to India, which Sitharaman told media in New Delhi on September 17 was "in the final stage". India plans to buy five S-400 missile systems for Rs 40,000 crore. Issuing a warning about the S-400 sale on August 29, Randall Schriver, US assistant secretary of state for defense in Asia and Pacific security affairs, refused to rule out sanctions being imposed against India. He said in Washington that the US would have 'significant concerns' if India purchased major new platforms and systems from Russia.
The Arms Pipeline
Earlier, in May, Prime Minister Narendra Modi flew down for an informal summit with President Putin in Sochi to signal just why it calls ties with Russia a 'Special and Privileged Strategic Relationship'. The MiG-21 opened the door to half a century of arms sales, which continue till date and Russian-origin warplanes, warships, tanks and submarines continue to make up over 60 per cent of India's arsenal. Washington's chagrin is understandable. It is already India's second largest supplier of military hardware, having sold over $15 billion worth of equipment over the past decade, but will not be able to displace Russia from its pole position in the Indian market.
The summit will highlight India's interest in the North-South Corridor, for a shorter route for Indian freight originating in Mumbai and travelling via Iran and Russia, and for training astronauts in Russia's Star City for India's first manned spaceflight mission, Gaganyaan, slated for 2021. But defence ties will remain front and centre.
Deals worth over $10 billion will be discussed or decided in the upcoming summit and these have the potential of continuing the Russian arms pipeline for at least two more decades.
Besides the S-400 missiles, which like the 36 Rafale jets that the Indian Air Force (IAF) says it needs to address a steep decline in fighter aircraft, there are likely to be discussions on the lease of another Akula-class nuclear-powered attack submarine for over $2 billion, a $2 billion deal for four Krivak-class frigates, over 200 Ka-226 Light Utility Helicopters, which are to be built by Russian Helicopters in a joint venture with Hindustan Aeronautics Ltd (HAL), and, in what is an attractive low-cost option but like the MiG-21 of enormous symbolic value, a government to government deal for the licensed production of over 600,000 AK-103 assault rifles for the Indian Army in an Indian ordnance factory.
Further down the line are orders for two IL-78 aircraft, to be fitted out as Airborne Early Warning and Control Aircraft with Israeli 'Phalcon' radars and the possibility of India ordering additional Su-30 jets from Russia to make up for its depleting squadrons and keep the near-idle production lines at HAL busy. The India-Russia military relationship has weathered recent disappointments, such as India pulling out of an 11-year-old joint venture project to build a Fifth Generation Fighter Aircraft (FGFA) in April this year. Officials say the agreements for the S-400 missile system, frigates and helicopters are on the anvil and only await clearance by India's apex decision-making body, the Cabinet Committee on Security.
Russian officials are calling the October 5 summit a 'litmus test'. "The Russians are deeply suspicious and have concerns over what they see as our increasing closeness to the United States," says G. Parthasarathy, India's former high commissioner to Pakistan. That closeness was manifest in a range of trilateral military exercises with the US, hardware sales, and a decision to post an Indian navy attaché to the US Naval Forces Central Command in Bahrain.
Moscow's concern has also been fuelled by the two agreements that India has signed with the United States over the past two years. The Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, which allows for Indian warships and aircraft to refuel in US military bases and vice versa. During the 'Two Plus Two' dialogue on September 6, India and the US inked COMCASA or the Communications Compatibility and Security Agreement, which allows Indian military platforms to access US tactical communications and purchase sensitive electronic equipment.
One Russian official says that signing BECA or the Basic Exchange and Cooperation Agreement for geospatial intelligence, a third foundational Indo-US agreement that is in the pipeline, will seriously imperil India's military relationship with Russia. BECA allows India access to US aeronautical, topography and nautical databanks and to the US's vast geospatial information bank and grants the US similar data about India. Russia fears capabilities of its frontline equipment being supplied to India could be leaked to the US.
Russia has now insisted India sign similar protocols with them, hence, one of the items on the agenda of the India-Russia summit is believed to be a LEMOA-like logistics supply agreement. It will ease the refuelling and resupply of Indian warships and aircraft when they transit through Russian ports and air bases during military exercises. Signing such agreements with Russia will help the Modi government balance the relationship with Russia and the US, both of which are needed at this critical juncture. Vice Admiral A.K. Singh, former commanding-in-chief, Eastern Naval Command, says it is the rise of China and the technological constraints of its indigenous industry that are forcing India to rely on both the US and Russia. "We are confronted by a rising hegemon, China, that is adding two blue water warships to its navy every month when our scientists cannot even make a decent rifle for our troops. We need Russian weaponry like the S-400 as well as the US as a critical partner for our Indian Ocean strategy of Maritime Domain Awareness (MDA), which will allow us to track all Chinese warships, submarines and merchant ships in real time."
There is, of course, concern over Russia's growing proximity to China as an ally against the West, which the Indian military and diplomats believe is a marriage of convenience. There is a third partner to this Cold War-like scenario-Pakistan, which has recently fallen out of favour with the Trump administration and whom Russia wants to use to reach out to the Taliban in Afghanistan, "to perhaps do to the US what the US tried unsuccessfully to do to it in Syria", says a government official. Parthasarathy adds, "India would be well advised to keep the Russian connection open and sustainable because we have no differences in interests. Russia has also been a good energy partner. They are now buying big companies like Essar. Russia could step in with oil and gas if India decides to move away from Iranian oil."
The depth of the military relationship between the two sides is intense. BrahMos Aerospace, the joint venture firm set up by India and Russia 20 years ago to manufacture the BrahMos supersonic cruise missile, is working on the next generation, lighter, faster version of the missile that is currently with all three services. "Critical technologies from this missile have been imbibed into other indigenous programmes-rocket boosters for the MR-SAM missile and launch canisters for the Agni missiles," says Sudhir Mishra, managing director and CEO, BrahMos Aerospace.
Russian assistance has been critical for India to realise the third leg of its nuclear triad of land, air and sea-based deterrents-nuclear-powered submarines armed with ballistic missiles (SSBNs). The first SSBN, the INS Arihant, was operationalised in 2016 and a second, the INS Arighat, was launched last December, with two more being built with Russian design assistance. Russian consultants will likely be on board India's ambitious project to build six nuclear-powered attack submarines (SSNs) to patrol the Indian Ocean region. The project was approved in 2015 and the submarines are likely to be inducted a decade from now.
Rupee-Rouble trade
Signalling New Delhi's resolve to smoothen the defence relationship in the face of US sanctions, Indian and Russian officials have in the past few months set up a new financial arrangement for India to pay for Russian military purchases in rupees and not in dollars, bypassing the SWIFT transaction route.
A protocol signed between the MoD and Russia's state arms trading firm, Rosoboronexport, in New Delhi in August, incorporates supplementary agreements into existing defence contracts. The new agreements switching payments to rupees will cover all existing transactions between Rosoboronexport and the MoD, the army, navy, air force, coast guard, Defence Research and Development Organisation (DRDO), Ordnance Factory Board (OFB) and all Indian Defence Public Sector Undertakings (DPSUs).
The government-owned Syndicate Bank in South Block will pay Russia's Sberbank at New Delhi's Connaught Place in roubles as a direct bank transfer. The first tranche of currency, equivalent to $40 million, was transferred in early September to pay for the refit of one of two Indian navy submarines currently in Russia. "The new system abandons the traditional system of Letters of Credit (LC) and going in for bank transfers. We have to now sign supplementary agreements to the original defence contracts to change the terms of payment from LCs to direct bank transfers. Otherwise, the doors have now opened to regular cash transfers in rupees. The dollar will be used only to denominate the price of the rupee and rouble on the day of the payment," says an Indian official familiar with the developments.
While the US's efforts appear to be to wean India away from its dependence on Russian platforms, the current state of the Indo-Russian relationship suggests that the Americans will be disappointed. The current trajectory suggests that the relationship is set to continue for the near future, long after the MiG-21 has finally flown into the sunset.
Ballet with the Bear
Russian president Vladimir Putin flies into New Delhi in his customised IL-96 jet on October 4 to participate in the 19th instalment of what will be one of the most closely watched Indo-Russian summits. Geopolitical shifts this year have fuelled such uncertainty-India's perceived tilt towards the US after a recently concluded 'Two Plus Two' dialogue in New Delhi last month and the prospect of US sanctions being applied to India if it buys Russian defence equipment. This would explain why New Delhi is currently working out the modalities of what will be a vastly symbolic photo-op during President Putin's visit-the gift to Russia of a flight-worthy Indian-built MiG-21 during the 19th Indo-Russian Summit on October 5.
The gift will evidently convey what defence minister Nirmala Sitharaman recently called India's "time-tested relationship with Russia". Beginning 1964, over 1,200 of these iconic jet fighters were bought from the former Soviet Union after India's attempts to buy similar missile-armed supersonic aircraft were rebuffed by the US and UK. In a geopolitical quirk, the Russian air force never inherited any of the Soviet air force MiG-21s after the Soviet Union's break-up in 1991 as they were stationed in the CIS countries. Russia, meanwhile, continued the Soviet Union's legacy of being India's largest supplier of military hardware.
India is to gift Russia an Indian-built airworthy MiG-21, a jet which the Russian air force itself has never operated
This year, India has argued hard with its new-found strategic partner, the United States, about the need to keep its Russian arms pipeline open in the face of CAATSA (Countering America's Adversaries Through Sanctions Act), the US sanctions directed against Russian arms firms. India could be the target of secondary sanctions though the US National Defense Authorization Act (NDAA) passed this August gives President Donald Trump the power to grant waivers. Meanwhile, in quiet negotiations with Russia between July 2 and 5 this year, Indian ministry of defence (MoD) officials worked out a new financial arrangement to protect the existing defence contracts from US sanctions by paying for arms in rupees rather than dollars.
US officials have warned against the impending sale of the Russian S-400 air defence missile to India, which Sitharaman told media in New Delhi on September 17 was "in the final stage". India plans to buy five S-400 missile systems for Rs 40,000 crore. Issuing a warning about the S-400 sale on August 29, Randall Schriver, US assistant secretary of state for defense in Asia and Pacific security affairs, refused to rule out sanctions being imposed against India. He said in Washington that the US would have 'significant concerns' if India purchased major new platforms and systems from Russia.
The Arms Pipeline
Earlier, in May, Prime Minister Narendra Modi flew down for an informal summit with President Putin in Sochi to signal just why it calls ties with Russia a 'Special and Privileged Strategic Relationship'. The MiG-21 opened the door to half a century of arms sales, which continue till date and Russian-origin warplanes, warships, tanks and submarines continue to make up over 60 per cent of India's arsenal. Washington's chagrin is understandable. It is already India's second largest supplier of military hardware, having sold over $15 billion worth of equipment over the past decade, but will not be able to displace Russia from its pole position in the Indian market.
The summit will highlight India's interest in the North-South Corridor, for a shorter route for Indian freight originating in Mumbai and travelling via Iran and Russia, and for training astronauts in Russia's Star City for India's first manned spaceflight mission, Gaganyaan, slated for 2021. But defence ties will remain front and centre.
Deals worth over $10 billion will be discussed or decided in the upcoming summit and these have the potential of continuing the Russian arms pipeline for at least two more decades.
Besides the S-400 missiles, which like the 36 Rafale jets that the Indian Air Force (IAF) says it needs to address a steep decline in fighter aircraft, there are likely to be discussions on the lease of another Akula-class nuclear-powered attack submarine for over $2 billion, a $2 billion deal for four Krivak-class frigates, over 200 Ka-226 Light Utility Helicopters, which are to be built by Russian Helicopters in a joint venture with Hindustan Aeronautics Ltd (HAL), and, in what is an attractive low-cost option but like the MiG-21 of enormous symbolic value, a government to government deal for the licensed production of over 600,000 AK-103 assault rifles for the Indian Army in an Indian ordnance factory.
Further down the line are orders for two IL-78 aircraft, to be fitted out as Airborne Early Warning and Control Aircraft with Israeli 'Phalcon' radars and the possibility of India ordering additional Su-30 jets from Russia to make up for its depleting squadrons and keep the near-idle production lines at HAL busy. The India-Russia military relationship has weathered recent disappointments, such as India pulling out of an 11-year-old joint venture project to build a Fifth Generation Fighter Aircraft (FGFA) in April this year. Officials say the agreements for the S-400 missile system, frigates and helicopters are on the anvil and only await clearance by India's apex decision-making body, the Cabinet Committee on Security.
Russian officials are calling the October 5 summit a 'litmus test'. "The Russians are deeply suspicious and have concerns over what they see as our increasing closeness to the United States," says G. Parthasarathy, India's former high commissioner to Pakistan. That closeness was manifest in a range of trilateral military exercises with the US, hardware sales, and a decision to post an Indian navy attaché to the US Naval Forces Central Command in Bahrain.
Moscow's concern has also been fuelled by the two agreements that India has signed with the United States over the past two years. The Logistics Exchange Memorandum of Agreement (LEMOA) in 2016, which allows for Indian warships and aircraft to refuel in US military bases and vice versa. During the 'Two Plus Two' dialogue on September 6, India and the US inked COMCASA or the Communications Compatibility and Security Agreement, which allows Indian military platforms to access US tactical communications and purchase sensitive electronic equipment.
One Russian official says that signing BECA or the Basic Exchange and Cooperation Agreement for geospatial intelligence, a third foundational Indo-US agreement that is in the pipeline, will seriously imperil India's military relationship with Russia. BECA allows India access to US aeronautical, topography and nautical databanks and to the US's vast geospatial information bank and grants the US similar data about India. Russia fears capabilities of its frontline equipment being supplied to India could be leaked to the US.
Russia has now insisted India sign similar protocols with them, hence, one of the items on the agenda of the India-Russia summit is believed to be a LEMOA-like logistics supply agreement. It will ease the refuelling and resupply of Indian warships and aircraft when they transit through Russian ports and air bases during military exercises. Signing such agreements with Russia will help the Modi government balance the relationship with Russia and the US, both of which are needed at this critical juncture. Vice Admiral A.K. Singh, former commanding-in-chief, Eastern Naval Command, says it is the rise of China and the technological constraints of its indigenous industry that are forcing India to rely on both the US and Russia. "We are confronted by a rising hegemon, China, that is adding two blue water warships to its navy every month when our scientists cannot even make a decent rifle for our troops. We need Russian weaponry like the S-400 as well as the US as a critical partner for our Indian Ocean strategy of Maritime Domain Awareness (MDA), which will allow us to track all Chinese warships, submarines and merchant ships in real time."
There is, of course, concern over Russia's growing proximity to China as an ally against the West, which the Indian military and diplomats believe is a marriage of convenience. There is a third partner to this Cold War-like scenario-Pakistan, which has recently fallen out of favour with the Trump administration and whom Russia wants to use to reach out to the Taliban in Afghanistan, "to perhaps do to the US what the US tried unsuccessfully to do to it in Syria", says a government official. Parthasarathy adds, "India would be well advised to keep the Russian connection open and sustainable because we have no differences in interests. Russia has also been a good energy partner. They are now buying big companies like Essar. Russia could step in with oil and gas if India decides to move away from Iranian oil."
The depth of the military relationship between the two sides is intense. BrahMos Aerospace, the joint venture firm set up by India and Russia 20 years ago to manufacture the BrahMos supersonic cruise missile, is working on the next generation, lighter, faster version of the missile that is currently with all three services. "Critical technologies from this missile have been imbibed into other indigenous programmes-rocket boosters for the MR-SAM missile and launch canisters for the Agni missiles," says Sudhir Mishra, managing director and CEO, BrahMos Aerospace.
Russian assistance has been critical for India to realise the third leg of its nuclear triad of land, air and sea-based deterrents-nuclear-powered submarines armed with ballistic missiles (SSBNs). The first SSBN, the INS Arihant, was operationalised in 2016 and a second, the INS Arighat, was launched last December, with two more being built with Russian design assistance. Russian consultants will likely be on board India's ambitious project to build six nuclear-powered attack submarines (SSNs) to patrol the Indian Ocean region. The project was approved in 2015 and the submarines are likely to be inducted a decade from now.
Rupee-Rouble trade
Signalling New Delhi's resolve to smoothen the defence relationship in the face of US sanctions, Indian and Russian officials have in the past few months set up a new financial arrangement for India to pay for Russian military purchases in rupees and not in dollars, bypassing the SWIFT transaction route.
A protocol signed between the MoD and Russia's state arms trading firm, Rosoboronexport, in New Delhi in August, incorporates supplementary agreements into existing defence contracts. The new agreements switching payments to rupees will cover all existing transactions between Rosoboronexport and the MoD, the army, navy, air force, coast guard, Defence Research and Development Organisation (DRDO), Ordnance Factory Board (OFB) and all Indian Defence Public Sector Undertakings (DPSUs).
The government-owned Syndicate Bank in South Block will pay Russia's Sberbank at New Delhi's Connaught Place in roubles as a direct bank transfer. The first tranche of currency, equivalent to $40 million, was transferred in early September to pay for the refit of one of two Indian navy submarines currently in Russia. "The new system abandons the traditional system of Letters of Credit (LC) and going in for bank transfers. We have to now sign supplementary agreements to the original defence contracts to change the terms of payment from LCs to direct bank transfers. Otherwise, the doors have now opened to regular cash transfers in rupees. The dollar will be used only to denominate the price of the rupee and rouble on the day of the payment," says an Indian official familiar with the developments.
While the US's efforts appear to be to wean India away from its dependence on Russian platforms, the current state of the Indo-Russian relationship suggests that the Americans will be disappointed. The current trajectory suggests that the relationship is set to continue for the near future, long after the MiG-21 has finally flown into the sunset.
PDV and AAD are technology demonstrators and indigenous BMD won't enter service in that guise. It will only be once AD-1 and AD-2 are ready, which would realistically take 10-15 years to mature.
Even upgrading to the level needed to construct ~4000T, 120-meter ships (which GSL has not done before) is a leap. If we had planned for it, it's not inconceivable that the planned upgrade would have GSL able to deliver ships up to 150m in length and above 6000T.
I sure hope so - however the latest RFI from Army clearly states 7.62x39mm rifles, 6.5L of them. And this requirement (whether it will be covered by AK-103 or not), is certainly for Army alone. Because RFI was issued by IA and IA will not be paying to procure rifles for the CAPFs or otherwise - for them MHA has separate tenders.
I sure hope the RFI changes again (wouldn't be the first time requirements changed anyway) and the 7.62x51mm becomes the required standard. Either way, all I see is a whole lot of back and forth regarding what exactly IA wants. And when they seem to finally decide on something, it never lasts. It's back to the drawing board again.
This has been made enough of a circus.
For the FTP carbines, if the deal goes through (it might not if the complaints of Thales are taken into account and someone orders cancellation of the process to avoid any accusation of wrongdoing), the production order will be fulfilled by MKU as they are the local partner of Caracal...but even then it will take quite a while because MKU doesn't have any small arms production facilities at the moment, unlike Punj Llyod which has an up-and-running production line for small arms.
UPA kept the spare reserves low and made Su30 suffer. The spare parts were of 50 crore value when the needed was 3500 crore. Each Su30 costs 430 crore and Inia has over 200 Su30. It is logical that the spare parts must be stocked
AAD and PDV are not demonstrators. The govt is currently discussing the LSP for AAD. It is expected to be deployed by 2020 or so. Even the radar sites for the Swordfish have been decided. This combination makes it better than THAAD, whereas the Americans are still working on integrating the Patriot and THAAD. With the AAD/PDV combo coming in soon, we have no need for the THAAD.
AD-1 and 2 will take 4 years once testing starts. The rest of the systems are AAD/PDV related, so only the missiles and any new/modified FCR will have to be tested. It will also use the same Swordfish for surveillance. I don't know if it will use the Thales radar as FCR or a new indigenous one. Either way, THAAD is not comparable to AD-1/2.
Anyway, these are all BMD specific. S-400 is being bought for air denial.
India to be the third country in the world to have the S-400 Triumf missile
“The system has four different missiles, from the 400-km range 40N6 which can knock out early warning aircraft, fighter jets and tactical ballistic missiles, to the 100-km range 9M96E which can neutralise manoeuvring targets like air-launched cruise missiles and smart bombs.”
Once the missiles are inducted in the IAF, multi-role fighters which are currently being used for air superiority role can then be used for other roles like air-to-ground missions.
THAAD can't do the above. But with the new 40N6 missile, the S-400 can do what the THAAD can, and also perform air defence.
It's not possible. As direct competitors, Mazagon Dock and GRSE will not hold GSL's hand during the P-17's construction, but United Shipbuilding will when it comes to their frigates. It's license production after all.
RFI is not the RFP. So anything can happen.
And it doesn't make sense that we are signing a production contract even before the RFP is released. It simply doesn't smell right.
But then, as Hellfire said, only the infantry rifles matter, the rest can have whatever. So even a political deal for the AK-103 is fine as long as the main infantry troops get western rifles.
The FTP is for direct import.
AAD is already in phase 2. It can enter service quite soon. It is maturing fast. PDV is uncertain. But there is no need for THAAD. S400 is the right option. Russia always gives some technology transfer everytime, unlike USA. S400 is mostly SAM but also has IRBM defence capability which ca be used for PDV which is struggling.
The $2billion is because it involves upgrade of GSL and manufacture of ships in India. There may also be Tot for the project, especially in areas which Idnia lacks. This is also a form of goodwill as Russia was stuck with 2 ships without engine from Ukraine.
Aks are already made in India. Last time Russia came and expressed anguish that India was not taking license for Kalashnikovs. So, to placate Russia, India has decided to take license by paying one time fees. This will be for goodwill only and not involve much money. Since Russians had openly exressed anguish at India stealing Russian IPR, India had little choice in this regard
Disagree.
- S400 is the best land-based long-range air defense system currently available. Its also reasonably priced.
- Talwar is cheap. You can get fully loaded one for $450 million (direct import). P17A will cost double of that. Every ship in the fleet doesn't need MFSTAR. Also, we already operate six same ships. IN is comfortable with the cost-benefit advantage.
Sorry, Washington, India Can't Be Scared Away From Russia
Kenneth RapozaSenior Contributori
MarketsI write about business and investing in emerging markets.TWEET THIS
Hi, Don! Vladimir Putin with Narendra Modi on October 4, 2018. Putin arrived in India on Thursday for a two-day visit during which India is expected to sign a $5 billion deal to buy Russian S-400 air defense systems despite a new U.S. law ordering sanctions on any country trading with Russia's defense and intelligence sectors. (Mikhail Metzel, Sputnik, Kremlin Pool Photo via AP)
Vladimir Putin is in India on Thursday, and defense contracts between the two countries are likely on the table. Despite the U.S. sanctions against Russian defense firms, India is unlikely to be scared away from the Russians by Washington’s strong-arming tactics. India prime minister Narendra Modi is his own man. His country is not dependent on the U.S., even as Lockheed Martin has a long-standing defense deal with the Tata Group to build the wings for the C-130 Hercules.
Modi is not going to diss Putin. And the U.S. defense industry doesn’t want to lose them to a political spat between Washington and Moscow.
India and Russia Defense Deals
Russia and India have long-standing defense relations. In fact, India has deeper ties to Russian military contractors than it does to Americans. However, Americans definitely view India as a country they do not want to lose. It is an important, trustworthy partner. As George Costanza of the ’90s sitcom Seinfeld once said, they’ve “got hand.” India has the upper hand when it comes to defense sanctions against the Russians.
The Russian government confirmed today that Putin will oversee the signing of an S-400 air defense system deal with India this week. The roughly $5-billion deal is “quite likely” according to the India state press after being delayed because of U.S. sanctions. Now that India is confident that it has a waiver around those sanctions, the missile contract looks imminent.
Russian army S-400 Triumf antiaircraft system outside of Red Square in Moscow. (AP Photo/Sergey Ponomarev)
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The Russian-built S-400 Triumf—aka the SA-21 Growler in NATO terminology—is a long-range surface-to-air missile system. It is considered to be more effective than the Terminal High Altitude Area Defense system developed by Lockheed Martin. The S-400 is a mobile system that can be deployed within five minutes and is capable of firing three types of missiles. It can simultaneously track 100 airborne targets, including super-fighters such as the F-35, and engage six of them at the same time.
Washington is well aware that it cannot punish India for this deal. India is a key military partner. Secretary of Defense James Mattis had asked the Senate to exempt India from the recent sanctions. And Admiral Harry Harris, Commander of the U.S. Pacific Command, said India represented a “strategic opportunity” for American defense contractors.
U.S. defense deals with India have grown from near zero to $15 billion since 2008, with Tata Advanced Systems being a key partner. Harpoon missiles, Apache and Chinook helicopters are all partially manufactured in India. Lockheed Martin aircraft and Boeing drones do not want to lose India because of Russia.
So as evidence that India will not be cowered, Washington gave Modi a waiver from Russian defense sanctions in July.
Trade War? No Thanks
Narendra Modi, India’s prime minister, listens as President Donald Trump speaks during a joint statement in the Rose Garden of the White House in Washington during their first meeting in June 2017. Washington might need India more than India needs Washington. Good for India. Photographer: Andrew Harrer/Bloomberg
The U.S. is unlikely to seek revenge in a roundabout way via “trade wars” with India.
The biggest trade issue for India is its IT firms being allowed to send India locals to the U.S. on H1-B visas. The U.S. has been cracking down on those visas for the last two years. India companies like Infosys have been caught in fraudulent uses of the visa, leading the U.S. immigration authorities that grant them to allow for fewer of those temporary work visas for the big Indian IT companies that take the lion’s share of the roughly 80,000 H1-Bs available each year.
India is still discussing bilateral trade issues with the U.S. as part of a “trade package” of mutual concerns, but no separate trade agreement is being considered, commerce department officials told The Economic Times in September.
Trump said India was keen on a trade deal, with Ambassador Kenneth Juster going so far as to call for an eventual free trade agreement. A trade pact is unlikely to benefit India much anyway because tariffs on most Indian goods are already low.
India ran a $22.6 billion trade surplus with the U.S. in the first 12 months of the year ending July 13, based on trade analysis provided by Panjiva Research. That deficit remained despite a 21.2% increase in U.S. exports to India and a more modest 10% rise in India imports.
Another reason why the U.S. won’t turn a cold shoulder to Modi because of his Russia deals: oil. Exports to India rose over 20% in August thanks in large part to higher oil imports. The U.S. is now one of the world’s largest oil and gas producers, rivaling non-OPEC member Russia. The U.S. may be able to beat up on the Europeans over their imports of Russian gas (to no avail, by the way) but will likely remain quiet when it comes to India.
That’s because India is a burgeoning market. There is room for growth there. And if the twin powers of the oil lobby and the defense lobby band together, one can surmise that bringing Washington’s commercial and political fight with the Russians to Indian soil is going to be a bad idea.
The 19th India-Russia Annual Bilateral Summit will take place in New Delhi on Friday. Modi and Putin are expected to review bilateral defense cooperation deals and discuss the oil and gas market in light of tighter sanctions on Iranian crude oil. India’s Foreign Ministry stated that the government will not abide by U.S. sanctions against Iran. But due to India’s exposure to the U.S. financial system, it has had to lessen its reliance on Iranian crude and did so last month for the first time since former president Obama reopened that market in exchange for a nuclear power deal. India is Iran’s second-largest oil client after China.
I've spent 20 years as a reporter for the best in the business, including as a Brazil-based staffer for WSJ. Since 2011, I focus on business and investing in the big emerging markets exclusively for Forbes. My work has appeared in The Boston Globe, The Nation, Salon and U...
MORE
For media or event bookings related to Brazil, Russia, India or China, contact Forbes directly or find me on Twitter at @BRICBreaker
Kenneth RapozaSenior Contributori
MarketsI write about business and investing in emerging markets.TWEET THIS
- Washington gave Modi a waiver from Russian defense sanctions in July.
- India’s Foreign Ministry stated that the government will not abide by U.S. sanctions against Iran.
Hi, Don! Vladimir Putin with Narendra Modi on October 4, 2018. Putin arrived in India on Thursday for a two-day visit during which India is expected to sign a $5 billion deal to buy Russian S-400 air defense systems despite a new U.S. law ordering sanctions on any country trading with Russia's defense and intelligence sectors. (Mikhail Metzel, Sputnik, Kremlin Pool Photo via AP)
Vladimir Putin is in India on Thursday, and defense contracts between the two countries are likely on the table. Despite the U.S. sanctions against Russian defense firms, India is unlikely to be scared away from the Russians by Washington’s strong-arming tactics. India prime minister Narendra Modi is his own man. His country is not dependent on the U.S., even as Lockheed Martin has a long-standing defense deal with the Tata Group to build the wings for the C-130 Hercules.
Modi is not going to diss Putin. And the U.S. defense industry doesn’t want to lose them to a political spat between Washington and Moscow.
India and Russia Defense Deals
Russia and India have long-standing defense relations. In fact, India has deeper ties to Russian military contractors than it does to Americans. However, Americans definitely view India as a country they do not want to lose. It is an important, trustworthy partner. As George Costanza of the ’90s sitcom Seinfeld once said, they’ve “got hand.” India has the upper hand when it comes to defense sanctions against the Russians.
The Russian government confirmed today that Putin will oversee the signing of an S-400 air defense system deal with India this week. The roughly $5-billion deal is “quite likely” according to the India state press after being delayed because of U.S. sanctions. Now that India is confident that it has a waiver around those sanctions, the missile contract looks imminent.
Russian army S-400 Triumf antiaircraft system outside of Red Square in Moscow. (AP Photo/Sergey Ponomarev)
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The Russian-built S-400 Triumf—aka the SA-21 Growler in NATO terminology—is a long-range surface-to-air missile system. It is considered to be more effective than the Terminal High Altitude Area Defense system developed by Lockheed Martin. The S-400 is a mobile system that can be deployed within five minutes and is capable of firing three types of missiles. It can simultaneously track 100 airborne targets, including super-fighters such as the F-35, and engage six of them at the same time.
Washington is well aware that it cannot punish India for this deal. India is a key military partner. Secretary of Defense James Mattis had asked the Senate to exempt India from the recent sanctions. And Admiral Harry Harris, Commander of the U.S. Pacific Command, said India represented a “strategic opportunity” for American defense contractors.
U.S. defense deals with India have grown from near zero to $15 billion since 2008, with Tata Advanced Systems being a key partner. Harpoon missiles, Apache and Chinook helicopters are all partially manufactured in India. Lockheed Martin aircraft and Boeing drones do not want to lose India because of Russia.
So as evidence that India will not be cowered, Washington gave Modi a waiver from Russian defense sanctions in July.
Trade War? No Thanks
Narendra Modi, India’s prime minister, listens as President Donald Trump speaks during a joint statement in the Rose Garden of the White House in Washington during their first meeting in June 2017. Washington might need India more than India needs Washington. Good for India. Photographer: Andrew Harrer/Bloomberg
The U.S. is unlikely to seek revenge in a roundabout way via “trade wars” with India.
The biggest trade issue for India is its IT firms being allowed to send India locals to the U.S. on H1-B visas. The U.S. has been cracking down on those visas for the last two years. India companies like Infosys have been caught in fraudulent uses of the visa, leading the U.S. immigration authorities that grant them to allow for fewer of those temporary work visas for the big Indian IT companies that take the lion’s share of the roughly 80,000 H1-Bs available each year.
India is still discussing bilateral trade issues with the U.S. as part of a “trade package” of mutual concerns, but no separate trade agreement is being considered, commerce department officials told The Economic Times in September.
Trump said India was keen on a trade deal, with Ambassador Kenneth Juster going so far as to call for an eventual free trade agreement. A trade pact is unlikely to benefit India much anyway because tariffs on most Indian goods are already low.
India ran a $22.6 billion trade surplus with the U.S. in the first 12 months of the year ending July 13, based on trade analysis provided by Panjiva Research. That deficit remained despite a 21.2% increase in U.S. exports to India and a more modest 10% rise in India imports.
Another reason why the U.S. won’t turn a cold shoulder to Modi because of his Russia deals: oil. Exports to India rose over 20% in August thanks in large part to higher oil imports. The U.S. is now one of the world’s largest oil and gas producers, rivaling non-OPEC member Russia. The U.S. may be able to beat up on the Europeans over their imports of Russian gas (to no avail, by the way) but will likely remain quiet when it comes to India.
That’s because India is a burgeoning market. There is room for growth there. And if the twin powers of the oil lobby and the defense lobby band together, one can surmise that bringing Washington’s commercial and political fight with the Russians to Indian soil is going to be a bad idea.
The 19th India-Russia Annual Bilateral Summit will take place in New Delhi on Friday. Modi and Putin are expected to review bilateral defense cooperation deals and discuss the oil and gas market in light of tighter sanctions on Iranian crude oil. India’s Foreign Ministry stated that the government will not abide by U.S. sanctions against Iran. But due to India’s exposure to the U.S. financial system, it has had to lessen its reliance on Iranian crude and did so last month for the first time since former president Obama reopened that market in exchange for a nuclear power deal. India is Iran’s second-largest oil client after China.
I've spent 20 years as a reporter for the best in the business, including as a Brazil-based staffer for WSJ. Since 2011, I focus on business and investing in the big emerging markets exclusively for Forbes. My work has appeared in The Boston Globe, The Nation, Salon and U...
MORE
For media or event bookings related to Brazil, Russia, India or China, contact Forbes directly or find me on Twitter at @BRICBreaker
Here is something I got which goes to the oft-ignored side of Indo-Russian relations. Reproduced here from Quora :
It is said - “A lie repeated often becomes the truth”. The Soviet propaganda machine,during the days of the Cold War took this message to heart and unleashed a virulent campaign across India creating the impression in the minds of gullible Indians that the Soviet Union was a true friend of the people of India. The ruling Congress party lend its full support to this propaganda. Beginning in the 1950s the KGB(as well as the CIA) started recruiting Indians in key positions – especially in the political leadership, military and intelligence. Oleg Kalugin, who was the KGB’s station chief in New Delhi wrote this in his memoir,Spymaster -
The Russians shared examples with the Indian public of Soviet help during the 1971 war with Pakistan and how the Soviet Union repeatedly vetoed anti India resolutions in the UN Security Council. While those examples were true, it’s also true that the Russians spoke half the truth. For example Russian help during the ’71 conflict was contingent upon India not crossing the international boundary and occupying Pakistani territory. In 1971 Lt Gen Sartaj Singh(from GOC XV Corps) called for the Indian Army’s Northern Command to capture areas in Baltistan (Pakistan Occupied Kashmir).However,the USSR had then made their exercising the UNSC veto conditional upon India not going on the offensive and subsequently occupying Pakistan territories. For example,the fortress of Qaiser-e-Hind at Hussainiwala in Pakistani Punjab had to be handed back to Pakistan by India.
Similarly, in return for Russian help at the Security Council, India had to support Soviet invasion of Hungary and Czechoslovakia ( this BTW also explains the tremendous hatred that former US Sec of State Madeleine Albright had for India.She was of Czech origin).[2] This is how former US Secretary of State John Foster Dulles & his team of US strategists interpreted India’s stand:
The point is neither the USSR nor modern day Russia has ever been a friend of India. Maybe they have not been sworn enemies of India unlike the UK and Pakistan but nonetheless their friendship was just an illusion created by Soviet statecraft. The intention of the Soviet Union then (and the USA now) was to contain India by embracing it because they realised very early in the game that:
(a) Indians are an easily pleased people ;
(b) Most Indians do not know their history and few learn from them, repeating the same mistakes of their ancestors and more importantly
(c) India hardly has any friends.
The last point is especially crucial because by creating the impression that they are friends of a country(India) which otherwise is bereft of any meaningful friend they were able to seize the opportunity.
The Soviet propaganda spearheaded by the KGB worked brilliantly and the occupation of the Indian mind was so complete that even to this day millions of Indians believe that Russia is indeed a friend while in reality most Russians just like their European counterparts either give two hoots about India or have a very poor opinion about India.
Russia calls Narsingh Yadav a cheat, wants him out of Rio Olympics
Neo-Nazis threaten Indians in Russia - Times of India
The results of a new social poll conducted in May 2016 by the Levada Center polling agency in Moscow revealed that only 18% Russians consider India to be an ally, compared to 50% who said Belarus is an ally, 39% said Kazakhstan is an ally and 34% said China is an ally.
Союзники и “враги” России, европейская интеграция
Meanwhile, the Chinese lobby in Moscow have gained such tremendous amount of power because of their close association with the ruling elites that they are dictating terms to the Kremlin as to how they should deal with India. Case in point, despite being asked by the Govt. of India to name Pakistan as one of the major sponsors of terrorism during the 2016 BRICS summit in Goa, Russian President Vladimir Putin was unable to do so because of severe pressure from the Chinese side to refrain from naming Pakistan, though he did have time to lament the terrible Indian weather and apparently presence of mice.
Modern Times
However it is not in Russia’s interest to openly oppose Indian candidacy as a permanent UNSC member. While none of the P-5 members want to see the rise of an extremely powerful India ( US media for example, continue to launch vicious attacks against India on a regular basis to damage India’s reputation),India continues to remain one of the largest market for their products & services. Especially for Russia for which India is a large market for Russian arms as well as oil & gas and going forward might just well serve as a bulwark against a rampaging China. Ergo, Russia and the US is hoping that since China will in any case veto India’s candidacy they can continue pretending to be in favour of India’s candidacy while opposing it behind the scenes. Just like the US that officially describes itself as a friend of India but provides Pakistan billions of dollars worth of military aid, so that Pakistan can counter India’s military might, similarly Russia continues to sell state of the art weapon systems like S-400 SAM and Su 35 fighter to China who intends to use them against India.
I'm not saying that India-Russia relation today is devoid of any substance, far from it. In the past,Russia has sold certain technologies (for example cryogenic engines) to India that other countries were unwilling to sell. Similarly, Indian military requirements stretched to the limit the design and technological capabilities of Russian developers and manufacturers and helped them design state of the art weapon systems.
Via : https://www.quora.com/Why-is-Russia...ite-being-an-old-friend/answer/Debájit-Sarkar
It is said - “A lie repeated often becomes the truth”. The Soviet propaganda machine,during the days of the Cold War took this message to heart and unleashed a virulent campaign across India creating the impression in the minds of gullible Indians that the Soviet Union was a true friend of the people of India. The ruling Congress party lend its full support to this propaganda. Beginning in the 1950s the KGB(as well as the CIA) started recruiting Indians in key positions – especially in the political leadership, military and intelligence. Oleg Kalugin, who was the KGB’s station chief in New Delhi wrote this in his memoir,Spymaster -
We had scores of sources throughout the Indian government—in intelligence, counterintelligence, the defense and foreign ministries, and the police.
The entire country was seemingly for sale, and the KGB and the CIA had deeply penetrated the Indian government. After a while, neither side entrusted sensitive information to the Indians, realising their enemy would know all about it the next day.
On one occasion, a senior Indian minister offered to pass information to the Russians for a fee of $50,000.
Former Indian Intelligence Bureau(IB) chief M.K.Dhar in his book Open Secrets[1]wrote that the IB had succeeded inThe entire country was seemingly for sale, and the KGB and the CIA had deeply penetrated the Indian government. After a while, neither side entrusted sensitive information to the Indians, realising their enemy would know all about it the next day.
On one occasion, a senior Indian minister offered to pass information to the Russians for a fee of $50,000.
"identifying four Union ministers (in Indira Gandhi's cabinet) and over two dozen MPs who were on the KGB payroll".
He went on to state that"the most surprising area of KGB penetration was the Defence Ministry and those layers of the armed forces which were responsible for military procurement"
Soviet StatecraftThe Russians shared examples with the Indian public of Soviet help during the 1971 war with Pakistan and how the Soviet Union repeatedly vetoed anti India resolutions in the UN Security Council. While those examples were true, it’s also true that the Russians spoke half the truth. For example Russian help during the ’71 conflict was contingent upon India not crossing the international boundary and occupying Pakistani territory. In 1971 Lt Gen Sartaj Singh(from GOC XV Corps) called for the Indian Army’s Northern Command to capture areas in Baltistan (Pakistan Occupied Kashmir).However,the USSR had then made their exercising the UNSC veto conditional upon India not going on the offensive and subsequently occupying Pakistan territories. For example,the fortress of Qaiser-e-Hind at Hussainiwala in Pakistani Punjab had to be handed back to Pakistan by India.
Similarly, in return for Russian help at the Security Council, India had to support Soviet invasion of Hungary and Czechoslovakia ( this BTW also explains the tremendous hatred that former US Sec of State Madeleine Albright had for India.She was of Czech origin).[2] This is how former US Secretary of State John Foster Dulles & his team of US strategists interpreted India’s stand:
The point is neither the USSR nor modern day Russia has ever been a friend of India. Maybe they have not been sworn enemies of India unlike the UK and Pakistan but nonetheless their friendship was just an illusion created by Soviet statecraft. The intention of the Soviet Union then (and the USA now) was to contain India by embracing it because they realised very early in the game that:
(a) Indians are an easily pleased people ;
(b) Most Indians do not know their history and few learn from them, repeating the same mistakes of their ancestors and more importantly
(c) India hardly has any friends.
The last point is especially crucial because by creating the impression that they are friends of a country(India) which otherwise is bereft of any meaningful friend they were able to seize the opportunity.
The Soviet propaganda spearheaded by the KGB worked brilliantly and the occupation of the Indian mind was so complete that even to this day millions of Indians believe that Russia is indeed a friend while in reality most Russians just like their European counterparts either give two hoots about India or have a very poor opinion about India.
Russia calls Narsingh Yadav a cheat, wants him out of Rio Olympics
Neo-Nazis threaten Indians in Russia - Times of India
The results of a new social poll conducted in May 2016 by the Levada Center polling agency in Moscow revealed that only 18% Russians consider India to be an ally, compared to 50% who said Belarus is an ally, 39% said Kazakhstan is an ally and 34% said China is an ally.
Союзники и “враги” России, европейская интеграция
Meanwhile, the Chinese lobby in Moscow have gained such tremendous amount of power because of their close association with the ruling elites that they are dictating terms to the Kremlin as to how they should deal with India. Case in point, despite being asked by the Govt. of India to name Pakistan as one of the major sponsors of terrorism during the 2016 BRICS summit in Goa, Russian President Vladimir Putin was unable to do so because of severe pressure from the Chinese side to refrain from naming Pakistan, though he did have time to lament the terrible Indian weather and apparently presence of mice.
Modern Times
However it is not in Russia’s interest to openly oppose Indian candidacy as a permanent UNSC member. While none of the P-5 members want to see the rise of an extremely powerful India ( US media for example, continue to launch vicious attacks against India on a regular basis to damage India’s reputation),India continues to remain one of the largest market for their products & services. Especially for Russia for which India is a large market for Russian arms as well as oil & gas and going forward might just well serve as a bulwark against a rampaging China. Ergo, Russia and the US is hoping that since China will in any case veto India’s candidacy they can continue pretending to be in favour of India’s candidacy while opposing it behind the scenes. Just like the US that officially describes itself as a friend of India but provides Pakistan billions of dollars worth of military aid, so that Pakistan can counter India’s military might, similarly Russia continues to sell state of the art weapon systems like S-400 SAM and Su 35 fighter to China who intends to use them against India.
I'm not saying that India-Russia relation today is devoid of any substance, far from it. In the past,Russia has sold certain technologies (for example cryogenic engines) to India that other countries were unwilling to sell. Similarly, Indian military requirements stretched to the limit the design and technological capabilities of Russian developers and manufacturers and helped them design state of the art weapon systems.
Via : https://www.quora.com/Why-is-Russia...ite-being-an-old-friend/answer/Debájit-Sarkar
Russian President Putin invites PM Modi to Eastern Economic Forum as main guest
Prime Minister Narendra Modi and Russian President Vladimir Putin had a telephonic conversation on Monday during which they focused on key bilateral and international issues and resolved to step up cooperation in dealing with terrorism, diplomatic sources said.
Putin wished Modi success in the upcoming parliamentary elections, Russian diplomatic sources said.
The leaders confirmed their mutual willingness to increase cooperation in fighting against international terrorism and solving other pressing world issues, they said.The conversation focused mainly on bilateral cooperation and current international issues, they said.
During the conversation, the Russian president invited Modi to take part in the Eastern Economic Forum in Vladivostok in September 2019 as a main guest, the sources said.
The leaders also warmly congratulated each other on the new year.
Russian President Putin invites PM Modi to Eastern Economic Forum as main guest
Prime Minister Narendra Modi and Russian President Vladimir Putin had a telephonic conversation on Monday during which they focused on key bilateral and international issues and resolved to step up cooperation in dealing with terrorism, diplomatic sources said.
Putin wished Modi success in the upcoming parliamentary elections, Russian diplomatic sources said.
The leaders confirmed their mutual willingness to increase cooperation in fighting against international terrorism and solving other pressing world issues, they said.The conversation focused mainly on bilateral cooperation and current international issues, they said.
During the conversation, the Russian president invited Modi to take part in the Eastern Economic Forum in Vladivostok in September 2019 as a main guest, the sources said.
The leaders also warmly congratulated each other on the new year.
Russian President Putin invites PM Modi to Eastern Economic Forum as main guest
Well someone worked hard for that propaganda, nice one ISI, keep it coming good for laughs.Here is something I got which goes to the oft-ignored side of Indo-Russian relations. Reproduced here from Quora :
It is said - “A lie repeated often becomes the truth”. The Soviet propaganda machine,during the days of the Cold War took this message to heart and unleashed a virulent campaign across India creating the impression in the minds of gullible Indians that the Soviet Union was a true friend of the people of India. The ruling Congress party lend its full support to this propaganda. Beginning in the 1950s the KGB(as well as the CIA) started recruiting Indians in key positions – especially in the political leadership, military and intelligence. Oleg Kalugin, who was the KGB’s station chief in New Delhi wrote this in his memoir,Spymaster -
We had scores of sources throughout the Indian government—in intelligence, counterintelligence, the defense and foreign ministries, and the police.
The entire country was seemingly for sale, and the KGB and the CIA had deeply penetrated the Indian government. After a while, neither side entrusted sensitive information to the Indians, realising their enemy would know all about it the next day.
On one occasion, a senior Indian minister offered to pass information to the Russians for a fee of $50,000.Former Indian Intelligence Bureau(IB) chief M.K.Dhar in his book Open Secrets[1]wrote that the IB had succeeded in
"identifying four Union ministers (in Indira Gandhi's cabinet) and over two dozen MPs who were on the KGB payroll".He went on to state that
"the most surprising area of KGB penetration was the Defence Ministry and those layers of the armed forces which were responsible for military procurement"Soviet Statecraft
The Russians shared examples with the Indian public of Soviet help during the 1971 war with Pakistan and how the Soviet Union repeatedly vetoed anti India resolutions in the UN Security Council. While those examples were true, it’s also true that the Russians spoke half the truth. For example Russian help during the ’71 conflict was contingent upon India not crossing the international boundary and occupying Pakistani territory. In 1971 Lt Gen Sartaj Singh(from GOC XV Corps) called for the Indian Army’s Northern Command to capture areas in Baltistan (Pakistan Occupied Kashmir).However,the USSR had then made their exercising the UNSC veto conditional upon India not going on the offensive and subsequently occupying Pakistan territories. For example,the fortress of Qaiser-e-Hind at Hussainiwala in Pakistani Punjab had to be handed back to Pakistan by India.
Similarly, in return for Russian help at the Security Council, India had to support Soviet invasion of Hungary and Czechoslovakia ( this BTW also explains the tremendous hatred that former US Sec of State Madeleine Albright had for India.She was of Czech origin).[2] This is how former US Secretary of State John Foster Dulles & his team of US strategists interpreted India’s stand:
The point is neither the USSR nor modern day Russia has ever been a friend of India. Maybe they have not been sworn enemies of India unlike the UK and Pakistan but nonetheless their friendship was just an illusion created by Soviet statecraft. The intention of the Soviet Union then (and the USA now) was to contain India by embracing it because they realised very early in the game that:
(a) Indians are an easily pleased people ;
(b) Most Indians do not know their history and few learn from them, repeating the same mistakes of their ancestors and more importantly
(c) India hardly has any friends.
The last point is especially crucial because by creating the impression that they are friends of a country(India) which otherwise is bereft of any meaningful friend they were able to seize the opportunity.
The Soviet propaganda spearheaded by the KGB worked brilliantly and the occupation of the Indian mind was so complete that even to this day millions of Indians believe that Russia is indeed a friend while in reality most Russians just like their European counterparts either give two hoots about India or have a very poor opinion about India.
Russia calls Narsingh Yadav a cheat, wants him out of Rio Olympics
Neo-Nazis threaten Indians in Russia - Times of India
The results of a new social poll conducted in May 2016 by the Levada Center polling agency in Moscow revealed that only 18% Russians consider India to be an ally, compared to 50% who said Belarus is an ally, 39% said Kazakhstan is an ally and 34% said China is an ally.
Союзники и “враги” России, европейская интеграция
Meanwhile, the Chinese lobby in Moscow have gained such tremendous amount of power because of their close association with the ruling elites that they are dictating terms to the Kremlin as to how they should deal with India. Case in point, despite being asked by the Govt. of India to name Pakistan as one of the major sponsors of terrorism during the 2016 BRICS summit in Goa, Russian President Vladimir Putin was unable to do so because of severe pressure from the Chinese side to refrain from naming Pakistan, though he did have time to lament the terrible Indian weather and apparently presence of mice.
Modern Times
However it is not in Russia’s interest to openly oppose Indian candidacy as a permanent UNSC member. While none of the P-5 members want to see the rise of an extremely powerful India ( US media for example, continue to launch vicious attacks against India on a regular basis to damage India’s reputation),India continues to remain one of the largest market for their products & services. Especially for Russia for which India is a large market for Russian arms as well as oil & gas and going forward might just well serve as a bulwark against a rampaging China. Ergo, Russia and the US is hoping that since China will in any case veto India’s candidacy they can continue pretending to be in favour of India’s candidacy while opposing it behind the scenes. Just like the US that officially describes itself as a friend of India but provides Pakistan billions of dollars worth of military aid, so that Pakistan can counter India’s military might, similarly Russia continues to sell state of the art weapon systems like S-400 SAM and Su 35 fighter to China who intends to use them against India.
I'm not saying that India-Russia relation today is devoid of any substance, far from it. In the past,Russia has sold certain technologies (for example cryogenic engines) to India that other countries were unwilling to sell. Similarly, Indian military requirements stretched to the limit the design and technological capabilities of Russian developers and manufacturers and helped them design state of the art weapon systems.
Via : https://www.quora.com/Why-is-Russia-opposing-Indias-bid-for-permanent-seat-in-UNSC-despite-being-an-old-friend/answer/Debájit-Sarkar