Interfax's Interview

Indian Prime Minister Manmohan Singh gave an interview in Delhi to Interfax and the All-Russia Television and Radio Company (VGTRK) in connection with the summit. The interviewer for Interfax was the agency's Deputy General Director Renat Abdullin.

Q.1: Mr. Prime Minister, what in your view are the prospects for development of strategic partnership between India and Russia, and what are your expectations in this regard from Russian President Vladimir Putin's visit to New Delhi?

Ans. The strategic partnership between India and Russia is unique. There is no other parallel of two major players in the international arena having maintained such steady and unbroken friendship over decades. While bilateral relations between other major powers have witnessed numerous upheavals, relations between India and Russia have weathered radical changes in the international system as well as political and socio-economic changes within the two countries - largely because our geo-political as well as national interests are compatible.

This deep and durable understanding between India and Russia is manifest today in our shared thinking that international peace and stability can be better maintained in a multi-polar world. The Declaration of Strategic Partnership between India and the Russian Federation, signed during President Putin's visit to India in October 2000, takes a long-term view our multi-faceted relationship, unaffected by tactical, or short-term, considerations. India-Russia strategic partnership is a factor for promoting peace, security and stability not only within the region but also globally. The rise of religious extremism and terrorism is a particular concern today. Our neighbourhood provides the biggest infrastructure for perpetrating terrorism, religious extremism and drug-trafficking the world over. We have, therefore, a profound interest in controlling these dangerous forces for the benefit of the international community, as well as for ensuring our internal security.

India-Russia political interaction has reached an unprecedented level of intensity. With President Putin, we have had six bilateral Summit-level meetings during the years 2000-06. Since 2000 annual summits between our two countries leaders have contributed a great deal to giving concrete meaning and content to our strategic partnership. President Putin is scheduled to visit India in January 2007 for our Seventh Summit meeting. President Putin will also be the Chief Guest at our Republic day celebrations in New Delhi on January 26. This is the first time that a Russian leader has been invited to be the Chief Guest at this function, and we are delighted that President Putin will be with us on this occasion. In him we have a very sincere friend of our country.

As regards our expectations from the next Summit meeting, we feel that President Putin's visit will add to the strategic content of our relations, particularly on the economic side, through a number of documents we hope to conclude during the visit.

Q.2.:Moscow and New Delhi have set for themselves the task of increasing the bilateral trade up to USD 10 billion by 2010. Is this not an extremely modest target, considering the fact that Russia and India are two important world powers? Will the two countries set more ambitious goals in the economic, trade and investment spheres?

Ans. With the end of the Soviet Union - till then one of India's biggest trading partners - our bilateral trade also dropped dramatically. Since then, Russia's economy has opened to the outside world and India has also greatly liberalized its economy. The implication of this is that the State in both our countries is no longer an arbiter of trade between the two countries, and decisions on what and how much to buy are taken on a commercial basis. India now has to compete with other commercial interests in the Russian market, and vice versa. The comparatively small trade turnover of about $ 3 billion reflects this factor. While our respective volumes of trade with other countries are growing, our bilateral trade is not showing the same dynamism. We are not satisfied with this and are determined to reverse this phenomenon and we have set a target of raising this to $10 billion by 2010.

Achieving US$ 10 billion bilateral trade turn-over by 2010 will not be easy; we would need to work hard and innovatively to more than triple the volume in four years. Since the possibilities for drastically raising the volume of our trade in goods and services in such a short time would be limited, promoting bilateral investment may be the way out. There is, or course, virtually no energy component included in the US$ 3 billion turnover.

To address structural problems and develop our economic engagement, the two countries have set up a Joint Study Group (JSG) to examine the potential for a comprehensive economic partnership agreement. This group will devise the appropriate policy and the administrative and other steps required to boost India-Russia trade and economic cooperation. Two meetings of the JSG have already taken place, and its report is expected next year. We have also agreed to set up a Trade and Investment Forum headed by the Russian Economic Development and Trade Minister and India's Commerce and Industry Minister. The first meeting of this Forum is expected to take place in February 2007. India is set to become an international player in the pharmaceutical and the automotive sectors. Russia has significant strength in the metallurgy, power and mining sectors, among others, and there are considerable prospects in India in these sectors. Our National Association for Software and Services Company (NASSCOM) estimates that by 2009, the IT industry in India will be valued at more than US $ 50 billion. We can  do more to promote IT cooperation between India and Russia, which is also emerging as leading IT hub.

Q.3: India has expressed its interest in supplies of hydrocarbons from Russia. However, India has participated only in the Sakhalin-1 project. Is India ready to propose its participation in the other projects in this sphere? Also, is New Delhi interested in expanding cooperation into other spheres of energy and power sector, including atomic energy?

Ans. Energy, I believe, can transform the nature of our economic ties. We believe the two sides can promote such cooperation based on political understanding while realising it on commercial terms. We are very keen that our cooperation with Russia in the field of energy should be multiplied many fold. The Indian economy is growing at the rate of 8-9 per cent a year, and our per capita energy consumption is still very low. India's annual energy imports amount to around 120 million tons, expected to go up to 200 million tons by 2015. India is a huge long-term market for energy. Therefore I believe that our two countries have enormous potential to strengthen our cooperation not only in the sphere of hydrocarbons.

Russia and India, to my mind, must be natural partners. When President Putin says that long-term security of both demand and supply are important, we fully agree with him. There is a clear compatibility between India's needs and Russia's resources. The fact that the two countries are not geographically contiguous is not very important, since the international oil and gas trade is not based on contiguity. India's interest in the Russian energy sector is not theoretical; it is a practical interest, proved by our investment in Sakhalin-1. We are very keen that the experiment of Sakhalin-1 should be extended to other oilfields. We are willing to invest more if the opportunity arises. We are also willing to offer Russian companies participation in Indian oil and gas projects, both upstream and downstream.

Russia is presently building two nuclear power plants in India, in Kudankulam. Russian nuclear power technology is internationally competitive. Since we have major plans to increase the share of nuclear power in our energy mix, there are concrete opportunities for cooperation in this area. We would also like this cooperation to expand in years to come.

Q.4: An additional question on energy. Do you foresee that Indian cooperation with United States in the nuclear energy sector can have a negative effect on energy cooperation with Russia in this sphere?

Ans. I have discussed this matter with President Putin several times and I am very happy to report you that President Putin is fully on board. He has told me that this cooperation is good for India and that Russia is fully supporting India in the nuclear deal that we have done with United States. And that Russia will support India in the Nuclear Suppliers Group when this case comes up before the Nuclear Suppliers Group. Russia and President Putin have been fully agreeing that we need this deal with US to get rid of the nuclear restrictions which have hampered India energy development particularly in the field of nuclear energy for the last 35 years.

Q.5: How do you access cooperation between India and Russia in the diamond industry?

Ans. We would like Russia to supply us with diamonds. We have been requesting. I hope when President Putin comes we can discuss this subject in our discussion.

Q.6: In the area of military-technical cooperation, the emphasis appears to be on licensed production and joint development Russia and India. One of the successful examples is the joint work on the modernization of the BrahMos missile. Is India ready to develop such cooperation and expand it to other areas such as Space? Is India ready to participate in the development of the Fifth Generation fighter aircraft  together with Russia?

Ans. Defense cooperation has provided a vital element of trust and stability and a solid foundation to our bilateral ties. Our cooperation with Russia in matters of defense is very deep and very strong and it has existed from the times of the former Soviet Union. And the disappearance of the Soviet Union has not weakened our defense ties with Russia. Most of the equipment used by the three wings of the Indian  armed forces is of Russian origin. India has played a role in easing the difficult situation of the Russian defense industry following the dissolution of the Soviet Union by placing large defense orders worth several billion dollars with Russia - in the shape of the aircraft carrier Admiral Gorshkov for the Indian Navy, T-90 tanks for the Indian Army and the Sukhoi-30MKI aircraft for our Air Force.

India will continue to be a large defense market in the years ahead because of its defense requirements, but at the same time the competitive pressure on the market will also increase. India and Russia have agreed that the two must move from a buyer-seller relationship to joint research and development, production and marketing of defense equipment. The Brahmos supersonic cruise missile is a good example of a joint Indo-Russian effort in this direction. We need to work on further strengthening the linkages between Indian requirements and the Russian defense industry in a longer term perspective.

In the space sector, India and Russia have agreed to cooperate in the GLONASS programme which constitutes recognition of the strengths of India's space-related capabilities  as well as a willingness to create a partnership in this highly advanced sector which in time will also yield considerable commercial dividends. Our two countries have also agreed, in principle, to launch a Youth Satellite, developed by universities in the two countries.

Space cooperation between our two countries is well-established and I see enormous future for the new products whether it is in the field of aircraft and other activities. We are very happy to work with Russia to deepen this cooperation in the field of defense.

Q.7: Press reports indicate that there is a possibility of India purchasing strategic fighter aircrafts and nuclear-powered submarines from Russia. Is New Delhi interested in these armaments?

Ans. I would not like to comment on speculative press reports. We have signed a contract for supply of Russian Sukhoi-30MKI aircraft to India, which is being implemented. We have several conventional submarines from Russia in our Navy. We have large scale and long standing cooperation in the defense field with Russia and this will continue.

Q.8: Is India worried about the nuclear test conducted by North Korea, and with the Iranian nuclear programme? In this connection, does India not consider it important to strengthen the nuclear non-proliferation regime?

Ans. We believe that all countries which have undertaken solemn international obligations should honor these obligations. India is deeply concerned at the nuclear test conducted by North Korea in violation of its international commitments. This development has implicated for regional peace and security and highlights the dangers of clandestine proliferation, which has affected India's security as well.

As for Iran, Iran is our neighbor, we have good relations with Iran, we wish them well and let me say that Iran being a signatory of the NPT Treaty is entitled to use nuclear energy for peaceful purposes and it is also as a signatory of the NPT Treaty has all the rights and all the obligations which are going with being a member of the Nonproliferation Treaty. India's position is that Iran has a right to develop peaceful uses of nuclear energy consistent with its commitments and obligations. At the same time, the international community has valid concerns, which must be addressed through diplomacy and dialogue and enhanced cooperation with the IAEA.

India has consistently supported the objective of non-proliferation and nuclear disarmament. We support renewed efforts of the international community to achieve this objective.

Q.9: What are India's views on UN reforms? Does India bank on Russian support for its candidacy to the permanent  membership of the UN Security Council?

Ans. The strengthening of multilateralism is essential for the democratization of international relations based on international law. There is a growing and widespread feeling among member states that the United Nations should reflect the contemporary reality and not the equations of the period when it was founded.

As a founding member of the United Nations, India has consistently and significantly contributed to all aspects of its functioning. We believe that comprehensive reform of the UN is essential to enable it to deal with the myriad challenges of today's world more effectively.

As we continue our active and constructive engagement with other member states on all aspects of UN reform, it is our firm belief that the reform and expansion of the UN Security Council, in both permanent and non-permanent categories, is central to the process of UN reform. There is a widespread and growing feeling that the composition and functioning of the UN Security Council does not reflect contemporary reality as indeed the expanded membership of the United Nations.  The representation of developing countries as permanent members of the Security Council is essential in this context. It is in this framework that India has expressed interest in becoming a permanent member of the Security Council. We highly appreciate that Russia has publicly supported India's aspirations in this regard and look forward to continuing to receive its valuable support in future. I discussed this subject many times with President Putin and he has assured me that Russia, when the time comes, will be on the side of India.

Q.10: Will India work towards membership in the Shanghai cooperation Organisation (SCO)? What are India's views on Pakistan's intentions of joining the SCO?

Ans. We would like to be associated with the Shanghai Cooperation. India obtained Observer status at the SCO in July 2005. We have conveyed to the SCO member states and to the SCO Secretariat India's interest in participating in SCO activities that promote economic, energy, educational and cultural cooperation as well as those directed against terrorism and trafficking in drugs. We are awaiting SCO's response to our request. If they invite us and we express our willingness to be a member we will welcome, I think, this opportunity. It is for the members to decide that issue. However, it is our understanding that the SCO has not yet finalized its policy on admission of new members, and we shall await that. As far as Pakistan's intensions to join the SCO are concerned, that is an issue between Pakistan and the SCO.

Q.11: Russia, India and China are three major important countries. Do you think it is feasible to enhance the political, economic and  military cooperation between the three countries in this triangle?

Ans. I do agree. We are all neighbors and all three countries want to play a major role in the global economy.

 It is a positive phenomenon that all major countries in the Asia-Pacific region seek deeper engagement with each other and share the assessment that a peaceful environment is of overarching importance for all of us to pursue the most fundamental tasks of national development. In effectively addressing challenges, we should avoid divisive policies and actions driven by the outmoded mindset of "balance of power" and instead strive for a more meaningful and inclusive cooperative framework in the region across a range of issues from security to trade and investment, disaster relief, coordination of development aid, disease and so on.

As Russia, China and India move ahead of their respective growth curves, a great challenge today is to find means to draw on the vast geo-economic potential that remains unexploited in our common neighbourhood. So we welcome this tri-partite cooperation. There is a need to allow our key economic and commercial sectors to interact with each other in the trilateral framework. In this endeavour, our vibrant private sectors have to be encouraged to interact more frequently. In this context, I would like to mention energy as a critical sector in which the three countries should build sustainable long-term trilateral cooperation.

Q.12: Russia has put in efforts in the past to normalize India-Pakistan relations. Does India need Russian help and assistance in this?

Ans.  While India values Russia as a trusted friend, we are confident that all the issues between India and Pakistan can be resolved bilaterally in a spirit of goodwill and friendship.

India and Pakistan have been engaged in a constructive dialogue since 2004 after a commitment was given at the highest level by Pakistan that no territory under its control will be used to support terrorism. Three rounds of the Composite Dialogue between India and Pakistan have concluded successfully and we will be commencing the fourth round in February 2007. A wide spectrum of bilateral issues is being  discussed with Pakistan and significant progress has been achieved. This process is anchored in people-to-people interaction and we have established transport links across the border and the Line of Control to facilitate this. It is important  that an environment of trust and confidence is created and the constituency of peace is expanded, which is integral to the process of building friendly relations. Despite the threat of terrorism across the borders, we are moving ahead in the right direction. Economic cooperation is taking place and the Joint Commission that remained dormant for 16 years has been revived in order to give an institutional and sustained basis to the improving relations. Bilateral trade had also grown at an impressive rate of about 40% in 2005-06 over the previous year. We intend to maintain our efforts to improve our ties with our neighbour Pakistan.

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