Medvedev to lure India away from West

New Delhi: Russian President Dmitry Medvedev will lobby hard during a visit to India on Tuesday for the former Cold War ally to stay loyal to Russian-made fighter jets and nuclear reactors, rather than those offered by the West.

Russia has been India's close economic and political partner since Soviet days, and monopolised India's defence market for decades, but New Delhi wants to reduce its reliance on one country to reflect its growing clout on the world stage.

Leaders from Britain, the United States, France and China - along with Russia, the permanent members of the United Nations Security Council - have all visited India in the last six months, securing contracts worth a total of around $50 billion.

Medvedev, accompanied by a large delegation of business leaders, is to hold talks with Prime Minister Manmohan Singh and ruling Congress party chief Sonia Gandhi on Tuesday in New Delhi, then visit the Taj Mahal in Agra and Mumbai on Wednesday.

"It is well known that we want to diversify our basket of suppliers for our strategic areas. We will always have close ties with Russia but they are no longer the only game in town," said a senior Indian government official, who declined to be named.

Russia sees India as a counterweight to China and a potential ally in Afghanistan. India's growing ties with the United States, underscored by a landmark civil nuclear deal, has made Russia ill at ease.

New Delhi is likely to seek unequivocal backing from Russia for its ambition to secure a permanent seat on an enlarged U.N. Security Council, following statements of support from Paris and Washington in recent months.

CONTRACTS

Medvedev is likely to secure a long-awaited contract with India on jointly developing 250-300 fifth generation fighter aircraft over 10 years. The contract amount is unknown, but unofficially said to be around $35 billion.

He may have a tough task convincing India to strike more arms deals following delays to the delivery of some Russian projects, including the Admiral Gorshkov heavy aircraft carrying cruiser.

Moscow-based defence analysts Cast say Russia has nearly tripled the price, and delayed delivery of the cruiser by four years, since signing the original contract in 2004.

Up for negotiation during Medvedev's visit will be a deal for a third site for a Russian-built nuclear power plant.

"Energy is one area where Russia will be the most important partner for India both in terms of conventional and non conventional energy.... Russians are one of our main suppliers of nuclear power plants," said Lalit Mansingh, former Indian foreign secretary.

Russia is keen to continue supplying technology and expertise to energy-hungry India as it plans to add 63,000 MW of nuclear power by 2032 to support its economic growth.

Behind the rhetoric of expanding ties with its fellow BRIC economy -- the term used to group emerging powers Brazil, Russia, India and China -- bilateral trade is eclipsed by Russia's booming economic ties with the European Union and China.

The Kremlin said trade with India will total $10 billion this year, while official statistics show Russia's trade with the European Union stood at $246 billion in the first 10 months of 2010, and trade with China was $47.5 billion in the same period.

India and Russia hope to boost bilateral trade to $20 billion within five years.

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