India and Russia Strengthen Economic Ties with Programme 2030

India and Russia have announced an expansive set of measures to deepen cooperation in trade, financial payments and civilian nuclear energy following the 23rd India–Russia Annual Summit in New Delhi, held during the State visit of Russian President Vladimir Putin on 4–5 December 2025.[1][3] The outcomes, recorded in a detailed joint statement and a formal list of deliverables issued by the Government of India, indicate a deliberate administrative push to move the relationship towards longer-term, rules-based economic and technological engagement up to 2030.[1][3]

Summit context and strategic framing

Prime Minister of India and President Vladimir Putin reviewed the full spectrum of bilateral ties under the framework of the “Special and Privileged Strategic Partnership”, with specific emphasis on trade, investment, energy and high-technology domains.[1] Both sides noted that the partnership had remained resilient amid a challenging global environment and agreed to make “all efforts to unlock the full potential” of their strategic partnership.[1]

The leaders assessed that cooperation now spans political, strategic, defence, energy, science and technology, nuclear, space, education, cultural and humanitarian areas, while new avenues are being actively explored.[1] They reiterated that development of India–Russia relations across the entire spectrum is treated as a shared priority in their respective foreign policy frameworks.[1]

Programme 2030: structured roadmap for economic cooperation

A central economic outcome of the summit is the adoption of the “Programme for the Development of Strategic Areas of India–Russia Economic Cooperation till 2030”, widely referred to as Programme 2030.[1][3] This document provides a structured roadmap to diversify and rebalance the economic engagement beyond traditional sectors, with a focus on manufacturing, technology and services.

According to the joint statement, Programme 2030 is intended to guide sector-specific engagement and institutional follow-up in areas such as trade facilitation, industrial cooperation, transport and logistics connectivity, financial collaboration, energy, including nuclear, and digital technologies.[1] Administratively, the programme will serve as a reference framework for inter-governmental commissions, working groups and line ministries on both sides over the next five years.[1][3]

Expanding bilateral trade and investment

The leaders reaffirmed a shared ambition to expand bilateral trade in a “balanced and sustainable” manner, with an explicit focus on increasing India’s exports to Russia, strengthening industrial cooperation and forging new technological and investment partnerships.[1] Both sides recorded satisfaction that bilateral trade volumes have grown substantially in recent years, driven largely by energy trade, and agreed that future efforts must address imbalances by supporting Indian exports in goods and services.[1][2]

To operationalise this goal, both governments decided to intensify work within the India–Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IRIGC-TEC) and through dedicated business forums.[1] The joint statement specifically welcomed the results of the 25th and 26th sessions of IRIGC-TEC and the India–Russia Business Forums held in New Delhi in November 2024 and in Moscow in August 2025, which have been used to identify new projects and remove regulatory bottlenecks.[1]

The leaders appreciated the launch and ongoing intensification of negotiations on a Free Trade Agreement on goods between India and the Eurasian Economic Union (EAEU), of which Russia is a leading member.[1][2] Once concluded, such an agreement would create a formal trade architecture for reduced tariffs and improved market access for Indian and Russian products in each other’s markets and across the EAEU region. Administratively, this will require harmonisation of customs procedures, standards and rules of origin, which will be handled through specialised negotiating groups and regulatory agencies.[1]

In parallel, both sides directed their competent authorities to intensify efforts towards a mutually beneficial agreement on the promotion and protection of investments.[1] Such an agreement, when finalised, is expected to provide legal safeguards and dispute resolution mechanisms for investors from both countries, potentially improving investor confidence in infrastructure, manufacturing, digital services and energy projects.[1]

New focus on payment systems and financial settlements

One of the most significant outcomes relates to cross-border payments and financial cooperation. India and Russia agreed to “continue jointly developing systems of bilateral settlements through use of the national currencies” with the objective of ensuring uninterrupted maintenance of bilateral trade.[1] This decision responds to the practical need for reliable payment channels in the context of evolving global financial conditions and sanctions-related disruptions.

Beyond national currency use, the two sides agreed to continue consultations on enabling interoperability between their national payment systems, financial messaging systems and central bank digital currency (CBDC) platforms.[1] This direction implies expanded technical engagement between the Reserve Bank of India and the Central Bank of the Russian Federation, as well as between payment system operators, to explore:

• Interlinking or coordination between domestic card and retail payment networks.
• Options for routing financial messages outside existing global platforms.
• Pilot arrangements for cross-border CBDC transactions, subject to domestic regulatory frameworks.

From an administrative standpoint, these initiatives will require the setting up or expansion of joint working groups on financial technologies, regulatory harmonisation, cybersecurity standards and consumer protection in digital payments. Any eventual operational arrangement is expected to be implemented in phases, beginning with technical pilots, followed by regulatory clearances and then scaling for commercial use.[1]

Deepening civilian nuclear energy cooperation

The summit reaffirmed nuclear energy as a critical pillar of India–Russia cooperation. The joint statement noted that the two sides are committed to expanding collaboration in peaceful uses of nuclear energy, including construction of nuclear power plants in India, fuel supply, waste management and future joint projects.[1] Russia reiterated its strong support for India’s membership of the Nuclear Suppliers Group (NSG), underlining a shared interest in a predictable global framework for nuclear commerce.[1]

India and Russia already cooperate on the Kudankulam Nuclear Power Project in Tamil Nadu, which is being built with Russian design and assistance. While the detailed project-level outcomes have been captured in the government outcome documents, the joint statement references ongoing and future cooperation in nuclear energy as part of a broader energy partnership.[1][3] The focus areas include:

• Timely completion and commissioning of additional units at existing project sites.
• Exploration of new reactor projects, subject to site selection and domestic clearances.
• Localisation of components and technology transfer to Indian public and private sector entities to enhance local manufacturing capabilities.
• Collaboration in nuclear safety, regulation, training and capacity building for Indian technical personnel.

The two governments also reiterated their joint commitment to non-proliferation of weapons of mass destruction and underlined the non-proliferation nature of export controls, signalling that expanded cooperation will remain anchored in international legal obligations.[1] Administratively, this means that any new nuclear energy arrangements will continue to be processed through India’s Department of Atomic Energy and its regulatory bodies, in coordination with Russian state nuclear agencies, and will be subject to applicable safeguards.

Energy partnership beyond nuclear

Beyond the nuclear sector, energy remains a major driver of bilateral economic engagement. The summit outcomes reaffirm continued cooperation in oil, gas and energy logistics, although much of this is captured in the broader trade and investment sections rather than as a separate standalone agreement.[1] India and Russia emphasised the importance of stable, predictable energy supplies and agreed to explore new forms of partnership, including joint ventures in exploration, refining and petrochemicals.[1][2]

The emphasis on national currency settlements and payment system interoperability is particularly relevant for energy trade, where large transaction volumes require reliable financial channels. Any successful implementation in this area could reduce transaction frictions for Indian refiners, logistics operators and public sector undertakings engaged in crude and product imports.[1]

Institutional mechanisms and implementation channels

The summit outcomes build on an extensive institutional ecosystem that already exists between the two countries. The key mechanisms highlighted in the joint statement include:

• The Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IRIGC-TEC), responsible for reviewing and advancing the economic agenda.[1]
• The India–Russia Inter-Governmental Commission on Military and Military Technical Cooperation, which met in New Delhi ahead of the summit and discussed defence-industrial collaboration, including Make in India initiatives for Russian-origin equipment.[2]
• Sectoral working groups on energy, transport, industry, science and technology, which will align their work programmes with Programme 2030.[1]
• Regular business forums in both countries to connect private and public sector companies, including small and medium enterprises, with policy initiatives and regulatory changes.[1]

These mechanisms provide the administrative backbone for translating summit-level directions into implementable projects and regulatory adjustments. Each commission or working group will now be expected to align its sectoral plans with the trade, payments and nuclear energy priorities identified during the summit.

Defence-industrial cooperation and Make in India linkages

Although defence was not the primary focus of the trade and payments announcement, the joint statement contains provisions with indirect economic implications. Both sides agreed to encourage joint manufacturing in India of spare parts, components, aggregates and other products for maintenance of Russian-origin arms and defence equipment under the Make in India programme.[1] The objective is to set up joint ventures or other collaborative structures to meet the needs of the Indian Armed Forces and allow for possible exports to “mutually friendly third countries”.[1]

This initiative has several administrative implications. It will require coordinated action from India’s defence ministry, public sector undertakings, private industry and Russia’s defence industry entities to:

• Identify priority platforms and equipment for localisation of spares and components.
• Negotiate technology transfer and licensing arrangements compliant with both countries’ export control laws.
• Secure regulatory approvals for joint ventures, investment flows and potential export destinations.

While primarily situated in the defence domain, this model of joint production aligns with the broader economic and technology transfer objectives of Programme 2030 and could create additional industrial and employment linkages in India. It also intersects with payment-related initiatives, as local manufacturing and rupee-based settlements may help reduce exposure to external financial disruptions.[1][2]

Multilateral economic coordination: BRICS, SCO and G20

The summit also reaffirmed India and Russia’s intent to coordinate positions at major multilateral forums on economic and financial governance. Both sides stressed the importance of their partnership within BRICS and committed to deeper cooperation in an expanded BRICS under three pillars: political and security, economic and financial, and cultural and people-to-people cooperation.[1]

Russia pledged full support for India’s upcoming BRICS Chairship in 2026, which will provide India an opportunity to shape the group’s agenda on issues such as sustainable development, multilateral development bank reform and resilience of international supply chains, including critical minerals.[1] The joint statement notes a shared interest in reformed multilateralism and reform of international economic governance institutions, signalling continuity in both countries’ positions on making global financial and trade bodies more representative.[1]

The two sides also reiterated the importance of their engagement within the Shanghai Cooperation Organization (SCO), acknowledging Russia’s recent hosting of the SCO Council of Heads of Government Meeting and India’s initiative to establish an SCO Civilizational Dialogue Forum.[1] Through G20, BRICS and SCO, India and Russia plan to coordinate on issues including climate change, sustainable development goals (SDGs), and compliance with free and fair trade norms.[1]

Statements from the leaders and official documents

The joint statement issued after the summit provides the principal official record of the understandings reached. It underscores the shared view that India–Russia ties remain resilient and are being oriented towards a contemporary, balanced and sustainable partnership.[1]

The Leaders underlined that India–Russia ties have remained resilient in the backdrop of the prevailing complex, challenging and uncertain geopolitical situation. Both Sides have strived to forge a contemporary, balanced, mutually beneficial, sustainable and long-term partnership.[1]

In relation to trade and payments, the document records the decision to advance national currency settlements and explore interoperability of payment infrastructures and CBDC platforms.[1] This approach is presented as an economic and technical initiative aimed at ensuring continuity of legitimate trade flows and enhancing the resilience of bilateral economic cooperation.

Potential impact on trade and industry

The combined effect of Programme 2030, progress on a prospective India–EAEU Free Trade Agreement, and the decisions on payment systems has several potential implications for trade and industry in both countries.

For Indian exporters, a more structured trade framework and improved payment channels could facilitate greater access to Russian and EAEU markets in sectors such as pharmaceuticals, agricultural products, machinery, engineering goods, textiles, information technology services and tourism-related services. Administrative clarity on customs procedures, standards and investment protections would be essential for these benefits to materialise.[1][2]

For Russian suppliers and investors, the initiatives provide a more predictable environment for long-term energy contracts, industrial partnerships, infrastructure investments and localisation projects within India. Joint manufacturing arrangements in defence, nuclear power components, engineering equipment and transport logistics may generate new business opportunities linked to India’s domestic market and potential third-country exports.[1][2]

The move towards national currency settlements and payment system interoperability can reduce transaction costs and settlement delays associated with foreign currency intermediaries. It may also diversify the range of financial tools available to businesses, although implementation will depend on technical readiness, regulatory approvals and market acceptance.[1]

Administrative follow-up and coordination

Implementation of the summit outcomes will require coordinated follow-up across multiple ministries and agencies on both sides. Key Indian institutions likely to be involved include:

• Ministry of External Affairs, for overall coordination of Programme 2030 and engagement under BRICS, SCO and G20 frameworks.
• Ministry of Commerce and Industry, for the India–EAEU Free Trade Agreement negotiations, export promotion and investment protection agreements.
• Ministry of Finance and the Reserve Bank of India, for work on national currency settlements, payment system interoperability and CBDC-related consultations.[1]
• Department of Atomic Energy and associated regulators, for nuclear energy projects and safety cooperation.[1]
• Ministry of Petroleum and Natural Gas, for energy trade and joint projects in exploration and refining.
• Ministry of Defence and associated agencies, for Make in India joint manufacturing of Russian-origin equipment.[1]

On the Russian side, corresponding ministries and state agencies in trade, finance, energy, nuclear power and defence will engage through existing commissions and working groups. Regular review mechanisms, including at ministerial and senior official levels, are expected to monitor progress against Programme 2030 milestones and summit directives.[1][3]

Broader governance and regulatory implications

The decisions taken at the summit intersect with several ongoing domestic reforms in India. Efforts to streamline customs procedures, improve logistics, digitalise trade documentation and enhance the ease of doing business will interact with the FTA negotiations and sectoral cooperation plans.[1] Similarly, India’s work on digital public infrastructure, including unified payments and identity systems, provides a basis for exploring interoperable solutions with foreign partners in financial services.

In nuclear energy, India’s emphasis on safety, regulatory independence and transparent oversight remains central. Any new or expanded projects with Russian participation will continue to be processed within this framework, subject to environmental clearances, public safety norms and international obligations.[1]

In the financial domain, any move towards CBDC interoperability will need to align with India’s phased approach to digital currency pilots, with a focus on security, privacy, financial stability and anti-money-laundering safeguards. This implies a cautious and regulator-led process for operationalising the summit’s broader directions on digital financial cooperation.[1]

Public-facing significance

For citizens and industry stakeholders, the summit’s focus on trade, payments and nuclear energy translates into a medium to long-term agenda rather than immediate day-to-day changes. In practical terms, the initiatives may, over time, support:

• More stable and diversified energy supplies through nuclear and conventional energy cooperation.
• Expanded opportunities for Indian businesses in the Russian and EAEU markets and vice versa.
• Improved reliability of cross-border payments for firms engaged in bilateral trade.
• Industrial and employment gains through joint manufacturing projects in defence and high-technology sectors.

The emphasis on formal programmes, structured roadmaps and multilateral coordination suggests that the outcomes are designed to be implemented through existing institutions and regulatory processes, with regular review at senior political and official levels.[1][3]