Putin India Economy: Putin’s Big Announcement: Not G7, Friendship with India is Russia’s Future! India World’s Third Strongest Economy
Putin India Economy: Recently, Russian President Vladimir Putin gave an interview to an Indian news outlet, making several significant remarks regarding the bilateral relations between India and Russia and India’s position in the global economy. Typically, Putin gives interviews to Western media outlets like the BBC or CNN, but this direct dialogue with Indian media is seen as a new chapter in the strengthening ties between the two nations. In this interview, he openly discussed his stance on returning to the G7 group and the future of India’s economy.
Proposal to Return to G7 and Putin’s Rejection
According to reports, former US President Donald Trump had sent a special message to Putin through his envoy. The proposal suggested that Russia could be readmitted to the G7 group, thereby turning it back into the G8. It is worth noting that Russia was expelled from this group in 2014 following the annexation of Crimea. Trump’s intention behind this offer was to bring about a pause in the Russia-Ukraine war or to secure a diplomatic success for America.
However, Vladimir Putin has outrightly rejected this proposal. He clearly stated that he has no interest in returning to the G7 or making it the G8 again. According to Putin, the economies of the G7 countries are now on a decline, and their share in the global GDP is continuously shrinking. Therefore, he is more interested in strengthening ties with emerging economies rather than joining declining ones.
Putin’s Perspective on India’s Economy
Instead of the G7 nations, Putin emphasized rapid-growth economies like India. He explicitly stated that based on ‘Purchasing Power Parity’ (PPP), India is currently the third-largest economy in the world. He prefers to invest in and cooperate with countries that are on a growth trajectory.
Putin explained India’s position by comparing two different models of GDP measurement, which is shown in the table below:
| Rank | PPP Model | Nominal GDP |
|---|---|---|
| 1 | China | USA |
| 2 | USA | China (Not mentioned) |
| 3 | India | Germany/Japan (Lower in list) |
| 4 | Russia | – |
| 5 | – | India |
| 9 | – | Russia |
Future of India-Russia Relations and Trade Goals
Putin mentioned that there is a strong possibility of a ‘Free Trade Agreement’ (FTA) being signed between India and Russia within the next 5 years. Additionally, India is moving forward with a trade agreement with the Eurasian Economic Union (EAEU), which includes countries like Russia and Kazakhstan.
Key Trade Goals for Both Nations:
- Trade Growth: Taking the volume of bilateral trade to $100 billion by the year 2030.
- Currency Usage: Currently, 90% of the trade between the two countries is being conducted in Rupees and Rubles, which has significantly reduced dependency on the dollar.
In conclusion, this interview by Putin is not just a warning to the Western world, but also a strong acknowledgment of India’s growing importance in global geopolitics. It has become clear from his statement that Russia’s future lies not with the West, but with powerful allies like India.
