Putin praises Modi’s ‘India first’ policy

Russian President Vladimir Putin has praised efforts by Indian Prime Minister Narendra Modi's government to foster “stable conditions” for economic development through policies that prioritize national interests. 

Speaking at the VTB Investment Forum in Moscow on Wednesday, Putin drew parallels between Russia’s import substitution program and a similar initiative in India, and expressed Russia’s willingness to expand investments in the country. 

“Prime Minister Modi has a similar program called Make in India. We are also prepared to set up a manufacturing base in India... The Indian prime minister and government have been creating stable conditions because the leadership is committed to an ‘India first’ policy, and we believe that investments in India are profitable,” Putin stated.

“I know that under Prime Minister Modi’s leadership, a similar policy is being implemented in India. Everyone is well aware of his call: ‘Make in India.’ We, for our part, are also ready to establish certain production facilities in India,” Putin continued.

He reminded attendees that the single largest investment in the Indian economy to date – amounting to $20 billion – was made by Russia’s state-owned oil giant Rosneft in 2017 when it acquired Essar Oil (now known as Nayara Energy). 

“The fact that the prime minister of India and the government are creating such reliable and stable conditions is largely due to the Indian leadership’s nationally focused policy across all areas, including the economy,” Putin noted. “We consider investments in India to be stable and highly profitable.”

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Economic cooperation between the two countries has expanded in recent years, amid Western sanctions against Moscow. New Delhi has ramped up purchases of discounted Russian oil despite Western pressure, taking bilateral trade beyond $65 billion last year.

As the world’s third-largest consumer of oil, India relies on imports for over 85% of its needs. Russia has become India’s top supplier, and New Delhi often highlights Moscow’s role in ensuring energy security. Officials have argued that India’s purchases of Russian oil and coal have helped stabilize the global energy market, preventing a widespread energy crisis.

During their meeting in Moscow in July, Russian and Indian leaders set a bilateral trade target of $100 billion. While welcoming the constant growth in economic cooperation, the sides acknowledged that a significant trade imbalance, driven by India’s rapid increase in oil imports, should be addressed. While imports from Russia last year stood at $61.1 billion, Indian exports were just $4.2 billion. 

Putin is expected to visit India next year at the invitation of Modi, the Kremlin confirmed on Monday. Russian presidential aide Yury Ushakov said the exact date will be finalized in early 2025.