Many analysts and enthusiasts monitoring India’s defense preparedness are likely disappointed that the joint statement released after the 23rd India–Russia Summit in New Delhi on December 4 and 5 did not list any defense-related MoUs or agreements.
The lack of mention contrasts with multiple statements by Russian officials promising cooperation in strategic segments such as defence, civil aviation, and space technology.
Based on the MoUs and agreements signed, the summit largely focused on economic cooperation—trade, energy security, fertilizers, workforce mobility, etc.
One way of interpreting this emphasis on economics and trade is that the summit was focused on laying a more robust, sanctions-proof foundation for intensified cooperation in defence, civil aviation, and space technology.
Currently, because of U.S. sanctions, India cannot trade with Russia in USD. And India does not have enough roubles to buy additional S-400 regiments, 2–3 squadrons of Su-57 stealth fighters, or small modular reactors. So how could India sign contracts for such strategic procurements?
India would prefer to pay in INR, but what would Russia do with INR? At present, India does not provide enough goods and services of interest to Russia.
India needs to first step up exports to Russia to more than match its imports from that country. Only then can it place further strategic orders. So, no S-400 or Su-57 deals for now.
Under these circumstances, it is not surprising that the summit was largely focused on stepping up Indian exports—food products, labour, and high-tech manufactured goods—to Russia.
Strategic-Level Shipbuilding Cooperation
There were, however, two strategic MoUs signed during the summit that have not received as much coverage in India’s corporate media as they deserve.
India and Russia agreed to finalize a Shipbuilding Cooperation Framework covering joint ship design, technology transfer, local manufacturing, and maritime infrastructure.
India’s Ministry of Ports, Shipping and Waterways, and Russia’s Ministry of Transport also signed an MoU to train Indian seafarers for Arctic navigation.
The agreements aim to enable joint production of ice-class vessels in India and to train Indian sailors to operate and navigate ships in Arctic waters.
Ice-class ships are vessels with reinforced hulls designed to safely navigate areas with floating or broken sea ice, such as those seen during Arctic summers.
They differ from icebreakers, which are specialized vessels—often equipped with powerful propulsion systems, including nuclear power—that can break through solid, winter ice cover. Icebreakers typically have rounded, sloping bows that ride up onto the ice and break it using the vessel’s weight and forward motion.
As a result of these agreements, India would be able to manufacture and export ice-class ships to shipping companies worldwide for operations through the Northern Sea Route (NSR). It would also be able to provide trained crews. Together, this would sharply increase the export of Indian goods and services in a niche sector.
Currently, annual cargo volumes through the NSR fluctuate between 35 and 40 million tonnes. President Putin wants to raise this volume to 200 million tonnes by 2031. There are not enough ice-class ships in the world today to meet that requirement.
India itself will need such ships as its own trade volumes on the NSR rise.
Joint ice-class shipbuilding will not only deepen strategic alignment between India and Russia but also facilitate increased bilateral trade.
Labour Mobility
Also during the summit, India and Russia signed an agreement defining a framework enabling citizens of one country to engage in temporary work in the other.
Russia has expressed interest in bringing in millions of Indian workers across manufacturing, construction, trade, and services.
In August, the Ambassador of India to Russia, Vinay Kumar, told TASS that Russia has manpower requirements, while India has skilled manpower, and that Indian workers are already being hired under existing Russian regulations, quotas, and company-level arrangements.
He noted that most Indian workers currently in Russia are employed in construction and textiles, but interest in hiring Indians in machinery and electronics is rising.
Expansion of Indian Exports
Indian firms have already increased shipments of equipment, spare parts, and tools to support Russian industrial needs. In the pharmaceuticals sector, Indian generic manufacturers are supplying medicines to Russian pharmacies and hospitals.
Russia is also seeking cooperation with Indian firms to co-produce energy sector equipment for later re-export—including to African markets.
Trade in agricultural products increased by more than 60% in 2024.
A representative of the Federation of Indian Export Organizations (FIEO) told TASS that Indian packaged foods—curries, ready meals, legumes, sweets, and snacks—are already widely sold in Russia, and that tea, coffee, rice, spices, and apparel could replace European brands on Russian shelves.
India has raised concerns over non-tariff barriers, particularly affecting agricultural and marine products. Exports of prawns and shrimp, for instance, could rise significantly beyond the current level of approximately $123 million.
Solid Economic Foundation Leading To Strategic Alignment
Over the past two years, India and Russia have worked to build a stable economic foundation, aiming for trade parity.
The two sides previously aimed to raise annual bilateral trade from approximately $60 billion to $100 billion by 2030. During the summit, the Indian Prime Minister expressed confidence that this milestone would be achieved ahead of schedule.
It appears likely that most of the increase will come from expanded Indian exports, which is precisely what this summit focused on.
When Will the Su-57s, S-400s & SMRs Come?
Russia has offered the Su-57 to India, including technology transfer and local production. India is expected to make a decision after prolonged negotiations.
As previously noted, the IAF is likely interested in the twin-seat Su-57D variant, expected to fly in early 2026. A twin-seat configuration would allow better crew coordination for loyal-wingman UAV operations and enhance training.
The IAF will also want confirmation that the Su-57 can carry the BrahMos-NG internally. Since BrahMos-NG development has only recently begun, India’s urgency is low. Likewise, India is awaiting delivery of the two remaining S-400 regiments ordered in 2018, and these have not yet been fully paid for.
Contracts will be signed only after all associated technical, logistical, and financial discussions are completed.
Conclusion
The reason major defence deals did not feature in the summit joint statement is that they have not yet been finalized. The summit instead focused on building the economic and logistical foundation necessary for a renewed, significantly deeper strategic partnership.
- Vijainder K Thakur is a retired IAF Jaguar pilot, author, software architect, entrepreneur, and military analyst.
- This is an Opinion Article. Views personal of the Author
- Follow the author @vkthakur
