Singhing Putin’s Praises

Today Russian Prime Minister Vladimir Putin and his Indian counterpart Manmohan Singh met in New Delhi to sign a number of bi-lateral commercial agreements. While the agreements cover a wide variety of topics, including space exploration, fertilizer importation, and commodities trade, nuclear energy and defense are what have received the most attention. Edging out competition ...

RAVEENDRAN/AFP/Getty Images
RAVEENDRAN/AFP/Getty Images
RAVEENDRAN/AFP/Getty Images

Today Russian Prime Minister Vladimir Putin and his Indian counterpart Manmohan Singh met in New Delhi to sign a number of bi-lateral commercial agreements. While the agreements cover a wide variety of topics, including space exploration, fertilizer importation, and commodities trade, nuclear energy and defense are what have received the most attention.

Edging out competition from France and the United States, Russia won contracts to build up to 16 new civilian nuclear power plants in India, six of which are expected to be completed by 2017, according to Russian Deputy Prime Minister Sergei Ivanov. This is sure to leave a sour taste in the mouths of many American firms, especially after the success of the 2005 Indo-U.S. civilian nuclear agreement.

Today Russian Prime Minister Vladimir Putin and his Indian counterpart Manmohan Singh met in New Delhi to sign a number of bi-lateral commercial agreements. While the agreements cover a wide variety of topics, including space exploration, fertilizer importation, and commodities trade, nuclear energy and defense are what have received the most attention.

Edging out competition from France and the United States, Russia won contracts to build up to 16 new civilian nuclear power plants in India, six of which are expected to be completed by 2017, according to Russian Deputy Prime Minister Sergei Ivanov. This is sure to leave a sour taste in the mouths of many American firms, especially after the success of the 2005 Indo-U.S. civilian nuclear agreement.

Additionally, the two countries signed a multi-billion dollar deal which will see Russia refit Indian aircraft carriers, help India develop transport aircraft, and supply India with 29 new MiG fighter jets.This should leave Russia well positioned to remain India’s largest military hardware supplier. Currently, Russia accounts for approximately 60-70% of India’s total defense spending. 

While New Delhi’s goal of diversifying its energy supplies and moving away from coal may be admirable — in 2003, coal was estimated to account for almost 70% of India’s energy consumption — you’ve got to question the wisdom of sinking billions of dollars into improving commercial ties with Russia when your country’s per capita GDP puts you in the bottom quartile of the world.  

Peter Williams is an editorial researcher at FP.

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