Sansad TV Perspective: Russia’s Far East: Opportunities for India

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: ‘Unplanned Urbanisation and Flood Impacts’.

Anchor: Teena Jha

Guests:

1. Skand Rajan Tayal, Former Ambassador
2. Prof. Charan Singh, CEO, EGROW Foundation
3. A K Bhattacharya, Editorial Director, Business Standard

Context: Eastern Economic Forum was held in Vladivostok, Russia.

Highlights of the discussion:

• Introduction.
• India-Russia relations.
• Significance of India’s Act Far East Policy.
• Areas of cooperation between India and Russia.
• Challenges.

Introduction:

• Indian Prime Minister addressed the online plenary session of the forum also attended by the Russian President. 
• India is keen to strengthen its partnership with Russia on Arctic subjects and there is immense scope for cooperation in newer areas, particularly in the field of energy.
• It was also recalled that India’s participation at the forum summit in 2019, resulted in the announcement of India’s ‘Act Far-East’ policy. As a result of that, India’s cooperation with the Russian Far East has increased in various fields. It has now become a key pillar of the ‘Special and Privileged Strategic Partnership’ between India and Russia. 

India-Russia Relations:

• The relationship between the two countries dates back to the post-independence era of India.
• India was the first country to establish a consulate in Vladivostok, the Far East region of Russia.
• Since 2015, India has been visualizing its Far East Policy.
• Apart from the announcement of the Far East Policy in 2019, India also extended the line of credit to develop the region.
• India-Russia trade was almost fifty percent more in 2021 as compared to pre-pandemic times.
• The share of Russian energy in India’s import basket has increased considerably from a single-digit number to nearly twenty percent in a span of four months.
• India is also dependent on Russia for arms supply and defence equipment.

Read more on India – Russia relations in the linked article.

Significance of India’s Act Far East Policy:

• India’s association with the Eastern Economic Forum is very far-sighted. It is an investment for the future as the region is relatively unexplored and underpopulated.
• It will offer a special opening for India as Russia wants India to become a partner in the development of the region.
• The region is also significant to India from the perspective of energy security. The thrust that India’s Far East policy will bring to the energy sector is immense.
  • Energy is extremely important as India is an emerging economy.
• Another important aspect that was reflected in the plenary session was that India continues to have an independent foreign policy that pushes India’s economic interests and safeguards its strategic interest.
• The focus area of the current edition of the Eastern Economic Forum is the Arctic circle, which is again future-oriented.
  • As the Arctic Ocean sea routes will be unleashed by the melting of the glaciers, Russia, which is a member state of the Arctic Council will offer India a foothold in the region.
• The theme of the meeting was “On the path to a multipolar world”. This is sending out a larger message to the world.

For more information on Eastern Economic Forum, read here: PIB Summary & Analysis for 7th Sep 2022

Areas of Cooperation between India and Russia:

• The areas of cooperation that were identified during the meeting include:
  • Energy security for India.
  • India is one of the few countries that has immense opportunity in the pharma sector and this was realized in the virtual address.
  • Diamond export is another area that will play an important role in raising the business to $50 billion by 2025.
• There was also a proposal in the meeting to strengthen and give shape to the ambitious International North-South Transport Corridor. This will create a lot of opportunities for Indian industries.
• Another area of cooperation that was highlighted is the supply chain. India is currently in a unique position that is insulated from any pressure due to its cordial relations with countries across the world.
• In terms of soft-power India is sending teachers/professors to Russia. This will provide great opportunities to the young demography of India.
• The construction activities in the region will also provide employment opportunities to Indians.
• Car and automobile exports were also discussed in the meeting. India has a vast spectrum of cars that can be exported to the region.
• India can also provide its expertise in the IT sector, especially at a time when Russia is not able to access hardware supplies from different parts of the world.

Challenges that exist in India-Russia relations:

• The relationship itself is undergoing change as there is a change in the global world order.
• The expanding Chinese footprint in the Far East region of Russia is a bone of contention in India-Russian relations. China is playing a proactive role in terms of investment and monopolizing key infrastructure projects in the region.
• Russia is also reeling under the pressure of Western sanctions due to its conflict with Ukraine. 
• The biggest challenge in deepening trade relations is the payment mechanism. Though the Reserve Bank of India is working on this front, the solution to the issue will be the foundation to take India-Russia relations to new heights.

Conclusion:

The opportunities between the two countries far outweigh the challenges. The development of the Far East region of Russia can be a win-win situation for both countries.

Sansad TV Perspective: Russia’s Far East: Opportunities for India:- Download PDF Here

Read all the previous Sansad TV Perspective articles in the link.