The Hindu Business Line : A low-key visit

NO MOMENTOUS DECISIONS on mutual cooperation were expected during the Prime Minister, Dr Manmohan Singh's visit to Russia. After all, the occasion was the 60th anniversary of Nazi Germany's defeat in the Second World War, a commemorative event attended by 56 world leaders. Even so, there were some expectations from Delhi's side, as spelt out in the pre-visit statement, which said that the discussions would "aim to build upon the successful visit" of the Russian President, Mr Vladimir Putin, to India last December and focus on the "common objective we share of further consolidating our relations of strategic partnership".

During the Putin visit, the two sides had emphasised that the bilateral ties that rested on the "foundations of political, defence and economic exchanges of a substantial nature" had to be strengthened. Among the specific spheres of cooperation mentioned were "mutual investments in industries, cooperation in IT and banking," the exploitation of nuclear energy for peaceful purposes, and the development of new oil and gas fields and pipelines. Against this background, the achievements of the recent visit are few, the reported Russian reassurances on continued assistance to India's nuclear power sector (for the two Koodankulam reactors and fuel for Tarapur) being routine, without giving any indication of fresh initiatives.

Indeed, the only significant development was the introduction in the Lok Sabha of the Weapons of Mass Destruction and Their Delivery Systems (Prohibition of Unlawful Activities) Bill, 2005; at the time Dr Manmohan Singh was in Moscow. According to the Government, the envisaged control over export of WMD materials and technology would meet UN norms and should facilitate cooperation with both the US and Russia in the nuclear field. However, it remains to be seen if the new legislation will be enough for Moscow to counter effectively the objections of the Nuclear Suppliers' Group to the assistance Russia provides India on the nuclear power front. This is especially important with New Delhi showing interest in acquiring more nuclear reactors from Russia for civilian use. The other issue of note was the resolve by the two sides to set up a joint study group to prepare a report on a "comprehensive economic cooperation agreement".

Indeed the main concern vis-à-vis India-Russia relations is the poor performance on the economic front. Trade between the two countries has stagnated through the 1990s and till 2003-04. A serious effort will have to be made to identify new areas of mutual economic interest which would lead to a higher trade exchange. Indian industry has identified information technology, pharmaceuticals, telecommunications, financial services, oil and gas, textiles and diamond processing as holding promise for trade and investment. But this is only one, and the smaller, part of the story. The more important part relates to getting the private sectors of the two countries to take the investment and trading opportunities seriously, a task which could turn out to be difficult because of the strong tradition of public sector cooperation that has marked economic ties between the two countries.

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