NEW DELHI: India and Russia have agreed to deepen defence collaboration and develop systems for bilateral trade settlements using their national currencies, according to a joint statement following talks between Prime Minister Narendra Modi and President Vladimir Putin.
The statement said the partnership is being reoriented to support India’s push for self-reliance through “joint research and development, co-development, and co-production of advanced defence technology and systems.”
Both sides also agreed to encourage joint manufacturing in India of spare parts, components, aggregates, and other products for the maintenance of Russian-origin arms and defence equipment under the Make-in-India program, through technology transfer and the establishment of joint ventures to meet the needs of the Indian Armed Forces, as well as for subsequent export to mutually friendly third countries.
The two countries agreed to continue developing mechanisms for trade settlements in their respective currencies to ensure uninterrupted bilateral trade. Consultations will continue on the interoperability of national payment systems, financial messaging platforms, and central bank digital currencies.
“Russia and India have agreed to continue jointly developing systems of bilateral settlements through the use of national currencies in order to ensure the uninterrupted maintenance of bilateral trade,” the joint statement said.
On the nuclear front, India and Russia plan to finalise a second nuclear power plant site in India and accelerate technical and commercial discussions on VVER reactors of Russian design.
The agreement includes joint research, localisation, and manufacturing of nuclear equipment and fuel assemblies for Russian-designed large-capacity plants.
Foreign Secretary Vikram Misri emphasised India’s energy approach amid mounting pressure from Washington to curb Russian energy exports. “We have been fairly clear: as a significant importer of energy, 1.4 billion Indians have their energy needs secured… Indian companies, both private and public, make decisions based on evolving market dynamics.”
India and Russia also stressed the importance of resolving the Iran nuclear issue through “dialogue.”
The two leaders expressed concern over the humanitarian situation in Gaza and strongly “stressed the importance for all parties concerned to remain committed to agreements and understandings reached between them for cessation of conflict, humanitarian assistance, and sustainable peace.”
Both sides “noted with appreciation the close coordination between India and Russia on Afghanistan, including through the dialogue mechanism between the Security Councils of both countries.' They emphasised the important role of the Moscow Format meetings on Afghanistan, in which India participates.