Written by Michael Thervil
Photos by Reuters
Indian Prime Minister Modi is set to visit Russian President Vladimir Putin in Moscow today for the first time in 5 years. Although five years may not seem like a long time, the meeting of these two world leaders is monumental. India and Russia have always had a favorable view of each other and even more than that, they have had an even better relationship when it comes to economic trade. To date, India is the 2nd largest trading partner with Russia after China. In a world filled with war and uncertainty on nearly all levels, this visit between Prime Minister Modi and President Putin is seen by a growing number of people as a glimpse of light in a very long dark tunnel.
According to reports, the majority of people in India have a very positive view of Russia, and the impact of Russia on the national economy of India is undeniable. As one of Russia’s top trading partners, it can be argued that if India didn’t purchase the discounted oil and gas from Russia, it would have negatively affected the entire world as the cost per barrel of oil could have easily been roughly $150-$180 a barrel because of America’s weaponization of sanctions on Russia. To date, India purchases $25.5 billion dollars’ worth of oil which accounts for 62.3% of all imports from Russia.
Despite what many people think, oil and gas is not the top traded product between India and Russia. The top product that India exports to Russia are “Packaged Medicaments” and that’s worth well over $403 million, which according to the Observatory of Economic Complexity (OEC) consist of “Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses including those for transdermal administration in forms or packings for retail sale are used to treat or prevent a disease or condition.” For many Economists, that may seem unequally yoked. But if you observe the exchange rate between the Indian Rupee and Dollars, the amount is enormous ($33,641,251,150.00 est.).
This week’s meeting between the two national leaders will center around further advancing and ensuring the security of each other’s national interest along with addressing their future plans to expand trade and economic security between the two nations, thus strengthening bilateral ties between the two nations. The world is looking to see what comes out of this meeting between these two world leaders.
Comentários