India-Russia Relations: Maintaining Relevance, Weathering Storms

November 28, 2025: The “Special and Privileged Strategic Partnership” between India and Russia continues to demonstrate remarkable resilience, successfully navigating the complex geopolitical storm surrounding the Ukraine conflict and India’s growing ties with the West. Recent high-level engagements, including the resumption of the annual summit, confirm that this time-tested relationship remains a vital pillar of India’s policy of strategic autonomy.

Defense and Trade: The Anchors of the Partnership

Historically, defense cooperation has been the bedrock of the India-Russia relationship, and it remains crucial. Russia is still a top military supplier to India, providing advanced platforms like the S-400 Triumf air defense system and supporting key indigenous projects under the ‘Make-in-India’ initiative, such as the licensed production of Sukhoi-30 MKI jets and T-90 tanks. A major focus is now shifting to joint production of spare parts and components to reduce dependency and overcome potential supply chain issues caused by sanctions.

On the economic front, bilateral trade has hit record highs, largely driven by India’s massive imports of discounted Russian crude oil. This pragmatic energy cooperation has provided India with essential energy security. Furthermore, both nations are actively working to diversify their economic engagement:

• Free Trade Agreement (FTA): Formal negotiations have begun for an FTA between India and the Russia-led Eurasian Economic Union (EAEU), aimed at broadening trade beyond energy and defense.
• Alternative Payment Systems: To bypass Western sanctions and the SWIFT system, officials are working to streamline transactions using a Rupee-Ruble exchange system and exploring the potential for mutual recognition of national card systems (like RuPay and MIR).
• Investment: The countries aim to increase their investment target to $50 billion.

Navigating Geopolitical Headwinds

The partnership operates under significant pressure, primarily due to the ongoing conflict in Ukraine and India‘s deepening security alignment with the United States and the Quad.

• Strategic Balancing: India has not explicitly condemned Russia’s actions in Ukraine, instead calling for dialogue and a peaceful resolution. This stance demonstrates its commitment to preserving ties with Russia, which is essential for its defense needs, while also maintaining good relations with the West. This balancing act is a textbook example of India’s pursuit of strategic autonomy.
• The China Factor: India also views the strong relationship with Russia as a key counter-leverage, helping to prevent a complete Russian pivot toward its rival, China. Both nations also cooperate closely in multilateral forums like BRICS and the Shanghai Cooperation Organisation (SCO).

Key Challenges Ahead

Despite the strong political will, the relationship faces persistent challenges that need to be addressed to ensure its long-term stability:

• Trade Imbalance: The exponential growth in oil imports has led to a massive trade deficit, resulting in billions of unusable Indian Rupees accumulating in Russian accounts. Russia is prioritizing increasing imports from India, particularly in agriculture and technology, to “soften the trade imbalance.”
• Western Pressure: US sanctions, such as CAATSA, continue to complicate India’s defense procurement from Russia, pushing India to diversify its arms imports.
• The Future of Defense: While Russia remains a crucial partner, its share of India’s defense imports is gradually declining as New Delhi seeks to become more self-reliant and explores alternative high-tech suppliers.

In conclusion, India and Russia are demonstrating that their relationship is not merely a relic of the Cold War but a dynamic and necessary partnership. By focusing on shared interests in energy, defense co-development, and economic diversification—and actively managing the inevitable friction points—they continue to prove the enduring relevance of their “Special and Privileged Strategic Partnership.”