Two weeks after India significantly upgraded its defence ties with the United States through the Comcasa (Communications Compatibility and Security Agreement), the Modi government has cleared the way for one of the biggest purchases from Russia — $2.2-billion frigates deal.
Russia and India are interested in increasing cooperation, which could result in a greater trade turnover and wider use of ruble and rupee in trade.
“In recent years, bilateral trade has gained steady growth rate… I hope, we will be able to reach the target level of $30 billion in the coming years,” said Russian Deputy Prime Minister Yury Borisov at a meeting with Indian Minister of External affairs Sushma Swaraj in Moscow.
The Donald Trump Administration on Friday had warned India that there could be “implications” for going ahead with the purchase of S-400 missile defence system from Russia, saying that it has the potential to trigger Countering America’s Adversaries Through Sanctions Act (CAATSA).
The warning came soon after the United States slapped punishing financial sanctions on a Chinese military unit for its purchase of the S-400 surface-to-air missile as well as the Sukhoi Su-35 fighter jets.
India and Russia are also expected to conclude a deal during their October 5 annual summit here to increase Delhi’s investments in Russian oil fields. India is eyeing to develop energy ties as a key pillar of the strategic partnership.