Modi-Putin meeting: India to manufacture Russian weapon components, trade to hit $100B

NEW DELHI: As part of the Make-in-India initiative, Russia will provide technology to India to produce spare parts and other components for Russian weapons and defence equipment domestically. These products will then be exported to various countries. This agreement was reached during the meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin as part of the India–Russia summit held in Delhi. In addition, amid ongoing tariff disagreements with the U.S., both countries have agreed to increase their bilateral trade to $100 billion, up from the current level of approximately $64 billion.

The two countries finalised the economic cooperation plan for 2030. Efforts to establish a Free Trade Agreement between India and the Eurasian Economic Union will be strengthened.

India will identify a location for the second nuclear power plant with Russian assistance. Cooperation at the Kudankulam nuclear plant will continue.

President Putin announced that Russia will continue supplying petroleum products to India. These transactions will be carried out entirely in rupees and rubles, avoiding the US dollar. Currently, 96% of such trade already happens this way. Compared to dollar-based pricing, this shift brings significant financial benefits to India.

Earlier, the US had imposed additional tariffs on Indian goods because of India’s import of Russian oil. US President Donald Trump had repeatedly announced that India would stop importing Russian oil. Putin’s announcement clearly rejects that stance.

Putin received a ceremonial welcome at Rashtrapati Bhavan on Friday at 11 a.m. After paying tribute at Mahatma Gandhi’s memorial in Rajghat, he reached Hyderabad House for the summit. In the evening, he attended a state dinner hosted by President Droupadi Murmu and left for Russia at night.

No announcement on defence deals

• Discussions were held on India’s possible purchase of S-400 and S-500 air defence systems and the Sukhoi-57 fighter jet, but no official announcement was made. Putin said the two nations have agreed to deepen their five-decade-long strategic partnership.
• ISRO and Russia’s Roscosmos will enhance collaboration on projects, including human spaceflight.
• Both countries will cooperate on peaceful uses of outer space, such as satellite navigation and planetary exploration. Joint work on rocket engine development, production, and use will continue.