“Although there has been a sea-change in the international situation during the last decade, Russia and CIS Countries remain indispensable to the core of India’s foreign-policy interests.”
Dr. Manmohan Singh (in early 2007)
“Relations with India have always been and I am sure will be one of the most important foreign policy priorities of our country. Our mutual ties of friendship are filled with sympathy, and trust, and openness. And we must say frankly that they were never overshadowed by disagreements or conflict. This understanding - this is indeed the common heritage of our peoples. It is valued and cherished in our country, in Russia, and in India. And we are rightfully proud of so close, so close relations between our countries.”
Dmitry Medvedev, President of Russia (in late 2008)
We are confident that India lives in the hearts of every Russian. In the same way, I can assure you that Russia also lives in our souls as a Homeland, as people who share our emotions, our feelings of mutual respect and constant friendship. Long live our Friendship!
Pratibha Patil, President of India (2009)
I have deliberately chosen these warm words of our leaders to express the mutual love, trust and co-operation between our countries to begin my dialogue this evening.
I wish to complement the organizers of this seminar on India and CIS Countries: New Prospects of Cooperation in the Present Day Global Scenario for their initiative to explore the possibilities of wider co-operation. As we all know, the world is moving to a greater degree of co-operation in addressing the challenges of the time, be it economic, political, strategic or human development in a much more imaginative manner. Such an integrated approach has enormous significance when it comes to India and CIS countries.
Let me first reflect on the unique nature of relationship between India and erstwhile USSR by way of historicity and example.
USSR had always been the most reliable ally of India and this relationship embraced intense political, economic and military cooperation. The relationship had sustained with full cordiality ever since Jawaharlal Nehru, Prime Minister of India and Khrushchev, the Russian Premier had cemented the relationship through their mutual visits in the year 1955.
The socio-economic and scientific-technological development that we have achieved over the period has elevated India into the group of leading states of the global community. CIS region is also growing very fast through industrialization, diversification of economy and effective exploitation of resources especially in the last decade. It is evident that, Russia, the leading player in the CIS, is regaining its economic strength and influential position. Any meaningful co-operation between India and Russia and equally close relations with the CIS countries has great significance at this juncture, given the power relations in the global system.
The birth of Commonwealth of Independent States has seen an increase in the economic relationship between the countries of the CIS and India especially, in the recent years. The `Focus: CIS Programme' launched by the Department of Commerce under the Ministry of Commerce & Industry of India to enhance India's exports to CIS countries is important one that needs particular mention. However, the full potential has not yet been fully realised.
Some of the hurdles that affect our trade and commercial activities are limited connectivity/transport facility, lack of credible information about business opportunities, ad hoc nature of interaction among the business houses & inadequate banking facilities in the CIS Countries. We should speed up the proposed project of International North-South Transport Corridor since this would help facilitate smooth movement of goods and services across India and CIS countries. Attention should also be given to connecting the two regions via sea. Similarly, Indian banks should explore the chances of operation in the CIS countries by opening their branches which could help boost trade and investment in the region. There is also the need to pay more attention to joint investments and the establishment of joint ventures.
Some of the other areas where our countries can further extend/expand co-operation are tourism, education, pharmaceuticals, information and communication technology. Similarly, there is scope for broadening cooperation in energy sector like nuclear, gas and oil. There is an enormous cost advantage for CIS countries if they outsource their requirements from India’s pharma industry. Incidentally, it is worth to mention that India is doing very well in pharmaceutical exports and has captured almost 30 per cent of the market share in the region.
One important area where CIS countries can contribute to India is Energy Security. Central Asia, including Russia, now account for 15 percent of oil exports and over 27 percent of gas exports. The estimated oil reserves is about 9 percent of the world’s total. But its main hydrocarbon asset is natural gas, accounting for nearly 30 percent of proven gas reserves in the planet. India needs to ensure undisrupted energy supply to sustain the pace of its economic and Industrial growth.
Russia and India have agreed to undertake strategic cooperation for oil and natural gas exploration. This is a rapidly growing sector in the CIS region where Indian companies are also a major player with considerable investment. India already has a 20% stake in Sakhalin oil development and exploration rights for four oil fields, and pipeline projects.
Kazakhstan also helps India to ensure energy security as the two countries agreed to enhance bilateral trade and economic cooperation particularly in the hydrocarbon sector. India and Kazakhstan have also signed an agreement on civil nuclear energy - for cooperation between Nuclear Power Corporation of India and KazAtomProm, a uranium production company in Kazakhstan. It is observed that long-term cooperation for supply of Kazakh uranium for nuclear reactors will help in solving India’s power demand.
CIS-India relationship is also significant in the context of India’s security requirements. India has already established close relations with all the CIS states in this behalf. Joint action by India and CIS in containing terrorism needs special attention. The support of CIS countries to the Indian draft resolution at the UN on Comprehensive Convention on International Terrorism [CCIT] is a major step in this regard. Besides, India and Russia have signed a MoU on cooperation in combating terrorism and formed a Joint Working Group on Combating International Terrorism as well.
I am happy to mention about the support extended by CIS countries to India’s permanent membership in the United Nations Security Council with full Veto Powers. The move is particularly significant since it could lead to the third world and emerging countries from the CIS assert their power and position in the global system.
To conclude, we need to examine the possibilities of better engagement between India and the CIS countries in the fast-changing economic and geopolitical situation in the world. The need of the hour is to develop a perspective plan for mutual co-operation that would strengthen the interests of India-and CIS countries in different areas of mutual concern. Much would depend upon how we explore the possible areas of co-operation in the new context and work it out effectively for building a peaceful and harmonious world.
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