Thursday, December 11, 2014

The agreements signed between India and Russia are indeed very important for many reasons.  The most significant is to boost Mr. Modi's slogan of 'make in India' which in turn will give a tremendous push to the creation of jobs in India.  Needless to say, higher employment means more cash available in the hands of consumers which in turn will create more demand for goods resulting higher production of those desired goods.  So, on an overall basis, this is a step in the right direction as far as economy is concerned.  As we all know, due to the sanctions imposed by the western nations, weaker Ruble, lower oil prices and the apprehension on the part of global investors to invest in Russia, Russia is feeling the pinch of this burden. Keeping in view a long lasting relationship with Russia, it is also a good gesture to rise to the occasion for old friends at the time of need.  Therefore, signing of these agreements is a win-win situation for both India and Russia.  Secondly, what this writer feels the utmost important factor is the mileage India can achieve emanating from these agreements and that is to seek Russia's involvement to pacify China's aggressive territorial attitude towards India.  China has been trying to encircle India from North, Northeast, Southeast and West side of India's territories.  Russia being in good books with China can persuade the latter to mend its fences and desist from an aggressive territorial ambition.  We all know that China is exploiting a weak government in Islamabad to its own advantage and the live example is to upgrade the Gwadar port in Pakistan to bring oil from that port to China at a faster and cost effective rate and use this facility as their naval base.  In turn, China is arming Pakistan to provide a tough front to India.  This momentum can be stopped or at least slowed down with the help of Russia.  I wonder if something of this nature is in the Indian leaders' cards?

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