During his one-day stay in India today, Prime Minister Vladimir Putin plans to meet the country's leaders, hold business talks on over a dozen contracts, open two exhibitions, and hold an Internet conference with the greater Indian public.
The last item on the programme is certainly a departure from the routine. The format, strongly reminiscent of Vladimir Putin's live phone-ins with the Russian public, is being used in India for the first time, Yuri Ushakov, Deputy Chief of Staff of the Government Executive Office told RG. However, it does not mean that it will become a staple of Putin's foreign visits. "People are fed up with traditional business forums, so we decided to have an Internet conference in India," Mr Ushakov explained. There is yet another reason for the novel format. The Internet conference will use the infrastructure created by the firm Sistema Shyam Teleservices Ltd, in which AFK Sistema holds the controlling stake. In other words, the company's head, Vladimir Yevtushenko, wants to demonstrate to Putin the potential value of the large-scale telecommunications project, which has thus far cost over $4 billion.
The display of high technologies "from the North" will play into the Russian Prime Minister's hands, because immediately after the "phone-in," he and Indian counterpart Manmohan Singh will discuss the use of the Russian-designed GLONASS satellite navigation system in India. The two countries may even go so far as to organise a joint venture to produce GLONASS equipment.
Meanwhile, the fate of the ill-starred aircraft carrier Admiral Gorshkov will be at the top of the agenda. Last year. President Dmitry Medvedev had to admit that problems with the ship presented the only stumbling block to bilateral relations with India. The first agreement on the aircraft carrier was signed back in 2004, under which the modernisation of the vessel was to be completed at the Sevmash shipyards by 2008. Since then, however, the ship has not left the yard. The initial price was set at $1.5 billion, but as the deadline was repeatedly postponed, the original sum could no longer cover the work required. Moscow first asked its partner to increase the cost of the contract by $1.2 billion, then increased that request by a further $2.3 billion last year. During Putin's visit, Rosoboronexport and the Indian Defence Ministry are expected to sign an additional contract to modernize the carrier in the interests of India. The sum of this deal will be $2.35 billion instead of initial $970 million.
Furthermore, a $1.2 billion contract will be signed on the supply of 29 carrier-based MIG-29 K/KUB fighter planes for the vessel. The Admiral Gorshkov will be handed over to India in 2013 after the fighter planes have been supplied. Until then, the planes will be stationed at the naval base in Goa. In addition to the MIGs, India plans to buy about 40 SU-30 MKI fighter planes from Russia.
But there are other areas of military cooperation between the two countries, including a possible contract for the development of fifth-generation fighters for the Indian Air Force. although Yuri Ushakov doubts the agreement will be signed on this visit. The plane is to be created on the basis of the new Russian frontline plane (PAKFA), which will be superior to the American F-22 Stealth. The fighter may be fitted to carry BrahMos cruise missiles currently being developed by a Russian-Indian joint venture. Putin's visit to the Sukhoi aircraft design centre eliminated several questions: it was announced that the tests of the fifth-generation fighter plane T-50 would begin in April of this year, but that the planes would not be operational until 2015. In other words, India will have to wait for the ultramodern fighters for about as long as it will have to wait for the Admiral Gorshkov.
Regardless, relations between Russia and India are not only about military contracts. Peaceful matters such as nuclear energy will also be discussed during the visit. In this sphere, the two countries intend to jointly build two reactors for the Kudankulam nuclear power plant, where Rosatom expects to launch the first reactor this year.
The government's number-crunchers have calculated that the total sum of Russian-Indian deals will exceed $10 billion.
However, Vladimir Putin's visit to India is also important to strengthening friendly relations between the two countries. There is much common ground between Moscow and New Delhi. Both countries are members or observers of important political and economic blocs, including the SCO, RIC (Russia, India, China), and the better known BRIC, which comprises the abovementioned countries plus Brazil. However, because of the economic downturn last year, Russia is increasingly seen as the laggard of these unofficial economic groupings. According to experts, Russia's economic downturn last year was more profound than that of other BRIC and G-7 countries. Russia's GDP at the end of last year dropped by nearly 8%, while India's economy reported a growth of 6.5%.
Pier Sidibe