From the Nehru-Bulganin-Khrushchev exchange visits of 1955-1956 down to the present, New Delhi and Moscow have kept up a special partnership that has lasted more than half a century and is perhaps unique in the annals of world diplomacy. Barring the barren years of the Yeltsin period soon after the dissolution of the Soviet Union, India has had a greater and more sustained comfort level in political dealings with Russia than with any other world power. For the Russian side too, India has been a dependable partner whose value has been both political and economic. In commercial terms, the recent visits to India of U.S. President Barack Obama and Chinese Premier Wen Jiabao may have yielded a bigger and more immediate harvest. But the 30 agreements signed by Prime Minister Manmohan Singh and President Dmitry Medvedev, will, if fully implemented, pave the way for full-spectrum progress across a range of key sectors from nuclear energy and hydrocarbons to R&D, pharmaceuticals, and information technology. The latest visit also produced a welcome first easing in visa restrictions for business and transit travellers.

In the civil nuclear field, Russia has been the fastest off the block ever since the Nuclear Suppliers Group voted to exempt India from its export restrictions. Contractual negotiations are currently under way for the third and fourth reactors at Koodankulam but have been held up by lack of clarity on costs, financing and, to a lesser extent, liability. The Russian side is on record saying the stringent nature of the Indian liability law is not a major obstacle. But they are likely to remain in a ‘wait and watch' mode to see whether India makes any concessions on this front to the United States before themselves signing on the dotted line. Though the contractual talks between the commercial entities of both sides are technical and not political, their smooth conclusion will send an important signal to both France and the U.S., who maintain that the Indian liability law is a major deterrent for their own vendors. Beyond this issue, the India-Russia statement has given a further push to the joint development of a fifth-generation fighter aircraft. While this means the Indian Air Force will eventually acquire a technologically advanced aircraft as good as any being developed in the U.S. or Europe, care must be taken to keep development and manufacturing costs down and ensure sufficient diffusion of knowhow so that India's own capabilities in aircraft design and manufacturing are enhanced through this process.