Why is Putin's 2025 visit to India important?

Putin's visit is a reaffirmation of Russia-India relations at a time when Russia's international position has been weakened, and India's policy of striking a balance between Russia and the West has become more difficult due to the Ukraine war, Western sanctions, and global geopolitical developments.

Why is Russia an essential ally for India?

In important fields including defense supplies, nuclear energy, space technology, hydrocarbons, fertilizers, and connection initiatives like the Chennai–Vladivostok Maritime Corridor, Russia continues to be vital to India.

What are the main issues of contention between Russia and India right now?

Defense delivery delays brought on by the conflict in Ukraine, an extreme trade deficit, the rupee payment dilemma, Russia's increasing reliance on China, and problems like Indian citizens being enlisted in the Russian army are some of the main sources of annoyance.

How can India improve and update its ties with Russia?

Building sovereign manufacturing value chains, establishing a skilled migrant route to the Russian Far East, operationalizing a rupee-ruble reinvestment treaty, co-developing Arctic-tropics logistics, and cooperatively pursuing denied technology and defense exports are all ways that India may improve relationships.

Is the connection between Russia and India becoming less important?

The partnership is changing. Despite obstacles, the cooperation is still beneficial because of common strategic objectives, defense legacy systems, energy interdependence, and long-term geopolitical logic—as long as both countries adjust to changing global circumstances.

Rebalancing Relations Between Russia and India, 2025

Author

Kanak Singh

Created

December 7, 2025December 7, 2025

Reading time

11 min

Table of Contents

Introduction

To rebalance relations between Russia and India, the visit of Russian President Vladimir Putin to India is a significant reaffirmation of a partnership that has endured world turmoil for decades. The war in Ukraine has made India’s diplomatic balancing act more difficult, but it has also shown New Delhi’s dedication to upholding strategic autonomy and fostering enduring alliances. Russia continues to be India’s most important ally, especially when it comes to defense and energy cooperation, and both countries appreciate their partnership.

What are the main areas in which Russia and India collaborate?

Defense-From ‘Buyer-Seller’ to Joint Production
- To preserve India’s strategic independence and combat preparedness amid disruptions to the global supply chain, the defense partnership has shifted toward “Make in India” and technology transfer.
- To reduce the risk of Western sanctions and ensure the long-term maintenance of India’s Russian-origin armaments, this shifts from outright acquisitions to co-development.
- This extensive technological integration goes beyond simple sales, as seen by the 2025 agreement for the transfer of RD-191M semi-cryogenic engine technology and the continuous delivery of the remaining S-400 Triumf regiments (valued $5.43 billion).
Energy Security-Strategic Hydrocarbon Alignment
- Despite geopolitical pressure, India has successfully turned Russia into a leading energy guarantor by aggressively using inexpensive Russian crude oil to protect its domestic economy from global inflation.
- In order to secure equity oil and coking coal assets for India’s steel sector, this collaboration is now growing into long-term investments in the Russian Far East.
- With bilateral trade reaching a record $68.7 billion (FY25), Russia continued to be India’s top oil supplier in 2024–2025.
Connectivity-The Geoeconomic Maritime Corridors
- In order to avoid the unstable Suez Canal and save freight costs, both countries are operationalizing alternative logistical routes like the Chennai-Vladivostok Maritime Corridor (CVMC), therefore establishing a direct “energy bridge.”
- In addition to improving trade efficiency and connecting India to the Arctic and Pacific resource networks, this strategic diversification drastically shortens transit times.
- When the CVMC was put into service in November 2024, it decreased the shipping distance to 5,600 nautical miles and the transit period from 40 to 24 days, which is 40% quicker than the European route.
Nuclear Energy-Clean Power & Technology Synergy
- By building large-scale reactors without the stringent requirements sometimes imposed by Western partners, civil nuclear cooperation continues to be the most concrete high-tech partnership, supporting India’s net-zero ambitions.
- Russia is the only nation now constructing nuclear facilities in India, and the collaboration is steady and growing.
- The first shipment of nuclear fuel for the first loading of the third reactor at the Kudankulam nuclear power plant in Tamil Nadu was just delivered by Russia’s state-run nuclear business.
Space Sector- High-End Propulsion Technology
- In order to close significant technological gaps in India’s ambitious Gaganyaan mission, collaboration has advanced to vital strategic domains, including cryogenic propulsion and human spaceflight.
- Because Russia offers specialized technology like semi-cryogenic engines that other space powers seldom ever share, this industry is a prime example of “trust-based” collaboration.
- The Yuri Gagarin Cosmonaut Training Center in Russia provided astronauts for India’s innovative human spaceflight project, Gaganyaan, with extensive training.
Fertilizer Security-Agricultural Supply Chain Stability
- Russia has been India’s go-to source for soil nutrients, protecting Indian agriculture from shocks to global fertilizer prices and guaranteeing food security for 1.4 billion people.
- Because domestic fertilizer production costs are directly impacted by the volatility of worldwide gas prices, this dependable supply network is essential.
- Over 90% of India’s imports of mixed fertilizer in 2024–2025 came from Russia. In August 2025, high-level negotiations (IRIGC-TEC) centered on securing a long-term supply of urea and DAP to stabilize Indian subsidy bills.
Trade Settlement & Financial Interoperability
- Both countries are actively developing rupee-ruble payment systems and investigating the India-Eurasian Economic Union (EAEU) Free Commercial Agreement to get over restrictions and maintain commercial momentum.
- Now, the goal is to correct the trade deficit by promoting Russian reinvestment of hoarded rupees in Indian government securities and infrastructure.
- Despite U.S. sanctions, India and Russia increase rupee-rouble payments with the goal of reaching a $100 billion trade objective by 2030.
Diplomatic Trust
- In addition to serving as a geopolitical stabilizer against Western pressure and bolstering India’s commitment to strategic autonomy in a multipolar system, the relationship is based on extraordinary “leader-to-leader” trust that goes beyond conventional diplomatic engagement.
- By ensuring that political will triumphs over bureaucratic slowness, this customized diplomacy maintains the partnership’s resilience in the face of external sanctions and ideological pressure.
- The Indian prime minister recently defied diplomatic convention to personally greet President Putin at the airport, demonstrating this special relationship and indicating that, in spite of international isolationist narratives, Russia continues to be a key priority.

What are the main points of concern between Russia and India?

Defense Supply Chain Disruptions- Capability Gaps
- Russia’s capacity to complete vital defense contracts has been significantly hampered by the ongoing conflict in Ukraine, leaving the Indian Armed Forces with capability gaps and compelling New Delhi to turn abroad.
- India’s operational preparedness against China is in danger due to this unreliability, as Russia delays crucial air defense and navy systems in order to prioritize its own frontline requirements above export promises.
- The leasing of the $3 billion Akula-class nuclear submarine has been pushed back to 2028, years behind schedule, and the remaining two regiments of the S-400 system have been postponed until 2026.
Trade Imbalance-The One-Way Economic Street
- Without reciprocal market access for Indian manufacturing or medicines, bilateral trade has grown unsustainably unbalanced, thereby making India a net capital exporter to Russia.
- Because Russia continues to purchase expensive commodities from China while purchasing very little from India, this structural deficit undermines the partnership’s economic rationale.
- India’s imports to Russia totaled USD 63.84 billion in FY25, compared to just USD 4.88 billion in exports, according to official figures.
Strategic Divergence-The “Junior Partner” Syndrome
- India is concerned about Russia’s growing reliance on China, believing that Moscow is turning into Beijing’s “junior partner” and that this might jeopardize Russia’s neutrality in a future Sino-Indian confrontation.
- Russia’s usefulness as a strategic balancer for India in the Eurasian continent might be diminished by this geopolitical realignment.
- Amidst growing political relations and Western sanctions, China-Russian commerce reached a record high of $244.8 billion in 2024. Russia’s dependence on Chinese dual-use technology has rendered it more vulnerable to Beijing’s geopolitical objectives.
Payment Crisis- The “Rupee Trap” Mechanism
- Billions of dollars in payments are either frozen or difficult to clear as a result of the sanctions-related suspension of regular banking channels.
- Future defense and energy contracts will be delayed as a result of Russian exporters’ reluctance to amass unpredictable Indian Rupees.
- Russia is being forced to acquire up to $1 billion in rupee assets per month due to an unfair trading relationship with India.
Energy Economics- Erosion of Strategic Discounts
- As Western sanctions on tankers and insurance tighten and discounts narrow, the economic advantage from cheap Russian oil is fast diminishing, increasing India’s diplomatic costs without the prior substantial economic benefit.
- As the pricing advantage over Middle Eastern crude wanes, this lessens India’s motivation to withstand Western pressure.
- India saved 12.6 billion dollars over the course of three years by purchasing Russian oil, but the discount decreased to its lowest point in 2024–2025, when Russian crude was only about 2.3 dollars per barrel less expensive than other imports.
Humanitarian Irritant- Indian Nationals in the Russian Army
- The recruitment of Indian citizens into the Russian army, sometimes under pretenses, has become a significant diplomatic annoyance, resulting in casualties and popular indignation in India.
- People-to-people relations have been strained as a result of this problem, and the Indian Ministry of External Affairs has been obliged to make firm requests for prompt releases.
- Despite assurances of their release, 44 Indians were still serving in the Russian military as of November 2025, according to the MEA.
Regional Friction Pakistan Factor
- Russia maintains military ties with Pakistan despite India’s worries, indicating a readiness to sell weapons and hold exercises in order to diversify its South Asian allies.
- Moscow’s “hedging” tactic annoys New Delhi, which sees any military bolstering of Pakistan as a direct danger to national security.
- Despite India’s implicit reservations, Russia and Pakistan carried out the “Druzhba-2025” joint military exercise in September 2025.

What Actions Can India Take to Improve Relations with Russia?

Institutionalize a “Sovereign Value Chain” for Manufacturing
- India could suggest a “Sovereign Value Chain” plan that targets industries where Russia is subject to Western sanctions and goes beyond basic commerce to deep industrial integration.
- India may use the “trapped” rupee reserves for domestic industrial growth while resolving Russia’s supply chain issue by allowing Russian companies to establish exclusive manufacturing zones in India for vital components, such as precision engineering and aircraft spares.
- This establishes a mutually beneficial “Make in India” loop that benefits both Russian maintenance requirements and international export markets.
Operationalize a “Skilled Migration Corridor” to the Far East
- India should establish a formal, state-backed “Skilled Migration Corridor” with an emphasis on the Russian Far East in order to alleviate Russia’s catastrophic population loss and workforce shortfall.
- In order to facilitate the development of Siberian infrastructure, this proposal would include harmonizing occupational criteria and establishing special visa regimes for Indian engineers, construction workers, and healthcare experts.
- In addition to relieving internal pressure on Russia, this strategically establishes an Indian demographic imprint in an area that is becoming more and more influenced by China.
Establish a “Rupee-Ruble Reinvestment Treaty
- India must draft a formal “Reinvestment Treaty” requiring Russian excess rupees to be allocated to certain high-yield Indian corporate debt and infrastructure bonds.
- This system would turn Russia’s trade surplus into long-term ownership shares in Indian ports, refineries, and roads rather than keeping money dormant in Vostro accounts.
- Russia has a stake in the stability of the Indian economy thanks to this financial engineering, which turns a short-term payment barrier into a long-term economic anchor.
Co-Develop an “Arctic-Tropics” Maritime Grid
- India needs to transform the Chennai-Vladivostok Maritime Corridor from a trading route into a collaborative “Shipbuilding and Logistics Grid.”
- This entails working together to build ice-class commerce ships with Russian cryogenic technology at Indian shipyards, especially for the Northern Sea Route.
- Both countries can control a new, sanction-proof global logistical artery that avoids conventional choke points controlled by the West by combining Russia’s superiority in polar navigation with India’s skill in tropical maritime.
Create a “Critical Technology Exclusion Zone
- For “denied technologies” like quantum computing, advanced metallurgy, and civilian nuclear propulsion, both countries ought to create a collaborative research environment.
- They can establish a “Critical Technology Exclusion Zone” that functions independently of international IP laws by combining resources in regions where both confront potential or real Western technology denial.
- By securing “technological sovereignty,” this policy protects critical military and space achievements against outside geopolitical blackmail.

Conclusion

The relationship between Russia and India is at a critical point when strategic realism and historical trust must coexist. The collaboration must develop through more technological, energy, and financial cooperation as both countries deal with changing geopolitical and economic environments. “India-Russian ties have long been a factor of stability in international relations, and their growth and evolution are not only in the mutual interest of the two countries but also in the interest of the world,” as India’s EAM succinctly put it.

Frequently Asked Questions (FAQs)

Why is Putin’s 2025 visit to India important?
Putin’s visit is a reaffirmation of Russia-India relations at a time when Russia’s international position has been weakened, and India’s policy of striking a balance between Russia and the West has become more difficult due to the Ukraine war, Western sanctions, and global geopolitical developments.
Why is Russia an essential ally for India?
In important fields including defense supplies, nuclear energy, space technology, hydrocarbons, fertilizers, and connection initiatives like the Chennai–Vladivostok Maritime Corridor, Russia continues to be vital to India.
What are the main issues of contention between Russia and India right now?
Defense delivery delays brought on by the conflict in Ukraine, an extreme trade deficit, the rupee payment dilemma, Russia’s increasing reliance on China, and problems like Indian citizens being enlisted in the Russian army are some of the main sources of annoyance.
How can India improve and update its ties with Russia?
Building sovereign manufacturing value chains, establishing a skilled migrant route to the Russian Far East, operationalizing a rupee-ruble reinvestment treaty, co-developing Arctic-tropics logistics, and cooperatively pursuing denied technology and defense exports are all ways that India may improve relationships.
Is the connection between Russia and India becoming less important?
The partnership is changing. Despite obstacles, the cooperation is still beneficial because of common strategic objectives, defense legacy systems, energy interdependence, and long-term geopolitical logic—as long as both countries adjust to changing global circumstances.

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