The recent India-Russia annual summit makes an overall assessment of our time-tested relations with Russia opportune. Russia has stood by us in times of need and helped build our defence capability. However, with the broadening of India's external relationships, Russia has now to compete much more for political and economic space in India. The market and technology needs of the most advanced and dynamic sectors of the Indian economy, coupled with the diminishing role of the government sector, have also reduced the salience of our Russian connection.
Already between 50 per cent and 70 per cent of equipment with India's armed forces is of Russian origin, underlining the deeply strategic nature of the defence relationship. For India, this dependence is overwhelming; for Russia, India remains a client, albeit privileged. The delay in delivering the aircraft carrier Gorshkov and the demand for more than double the originally agreed price have seriously dented Russia's credibility in honouring contractual obligations. The final cost has been settled at $2.3 billion, but delivery will still be almost four years behind schedule.
This setback has to be balanced against valuable Russian technical assistance in the construction of Arihant and the projected delivery on lease of the Russian nuclear submarine. During the prime minister's visit, India's participation in the joint development of the multi-role transport aircraft and the T-50 fifth generation fighter aircraft was reconfirmed. India will derive real value from this collaboration only if the promise of access to Russian design institutes and laboratories is fulfilled. Formalisation of the decision to extend the programme for military-technological cooperation for another 10 years - from 2011 to 2020 - signals India's intention to continue its long-term defence cooperation with Russia for larger strategic reasons.

