 India and Russia have historic ties dating back hundreds of years. The legendary Silk Route through Russia and Central Asia provided unique opportunities for early contacts and cultural exchanges. The memory is yet green of the intrepid Russian traveller Afanasi Nikatin crossing the three seas to reach the fabulous end. This is the starring saga that inspired the film Pardesi, jointly produced by Indian and Russian directors. Across centuries, Russia and India have evinced great interest in each other. In modern times too, there has been a meeting of great minds and a stimulating exchange of ideas. The Institute of Oriental Studies in Moscow pioneered in research and teaching what was then referred to as Indology. With passage of time, the scholars changed their focus and began to study Indian economy, polity and society. Interest in India grew steadily as Indo-Soviet relations were forged in diverse areas. During my stay in India, I witnessed growth of interest in India for Russia as well as of Russia for India. At that time, it was a continuous process and it culminated, I may say, in the Treaty of Friendship between India and Russia in 1971. 1970s were indeed a high-water mark in the context of Indo-Russian relations and academic interaction. We have from the 70s the Indo-Russian Joint Commission in Cooperation with Social Sciences. And this is a very good tradition we have and we organise a lot of joint seminars, joint projects, some visiting professors coming here and there, and exchange of books. Russian interest in India has not diminished. Many in the younger generation are extremely enthusiastic about India. I can say that millions of people in Russia are interested in this field because your culture is really exciting, ancient and very interesting. Fraternal feelings are rooted in shared memories. In the years since India's independence, India and the Soviet Union walked in step in the international arena and a mutually beneficial partnership was forged for accelerated economic development. During this period, the Russians also found the Indian support useful in popularising and exporting of their technology. India was in a position to offer the USSR lucrative contracts for construction of gigantic infrastructure projects and the economic and other benefits that accrued to both were substantial, steel making, hydroelectric power generation, oil exploration, aeronautics and pharmaceuticals were among the diverse areas of fruitful cooperation. The main items of traditional export from India include drugs and pharmaceuticals, tea, coffee, tobacco, leather and cotton yarn. In recent years, some non-traditional items have been added and the potential for future growth in exports is immense. Traditional imports from Russia comprise iron and steel, fertilisers, non-ferrous metals, chemicals and newsprint. An important part of Russian exports constitute heavy machinery. The special ties and growing interaction between India and Russia have continued even after the dissolution of the former Soviet Union. Early 90s was a time when the new Russia faced a shortage of hard currency. There were hardly any resources available to import consumer goods. Trade with India assumed great significance. Woolens, hosiery and leather products could be bought without diverting the scarce hard currency. Indian products have satisfactorily met rising Russian demands. However, the flip side to the rupee ruble trade, argue many, resulted in a lack of serious business contacts at a private level, even after more than a decade and a half of the emergence of new Russia. Meaningful and serious business interactions at a private level are yet to reach their true potential. What actually does distinguish the relationship between our two countries over the decades is actually the steadiness of it. That's one of the most remarkable features of the relationship. That said, yes, I think there was a period when the intensity of engagement wasn't quite as high as it had been in the past or as it is becoming now. And I would say in that sense 2000 was a turning point when President Putin came visiting and we signed the declaration on strategic partnership, set up the entire range of interactions that we've had since then, including an annual summit meeting. Cooperation in the field of defence covers a wide range of high-tech activities on land, sea and air. In the area of defence, India has in recent years signed packs to purchase and licence manufacturing, among other things, T90 tanks, Su-30 MKI jet fighters and the aircraft carrier Admiral Gorshko. This aircraft carrier is being refitted and refurbished extensively to suit Indian requirements. Bulk of the fighter squadrons in IAF comprise MiGs and Sukhoi. Large Indian orders for military hardware to the Soviet Union and Russia not only strengthened the defence of the former, but also significantly contributed to the economy of the latter, making possible further investment in research and development. India has on an average bought $1.5 billion worth of military hardware from Russia annually. With its $12 billion worth defence deals in recent years, India has acquired a preeminent position among the customers of the Russian defence industry. Along with other orders for supply of defence hardware, the Indian orders have also been crucial for the economic well-being and gainful employment of the Russian labour force in such important cities from St. Petersburg to Vladivostok. In the realm of missile technology too, the partnership has produced excellent results. In the words of the former Russian President Vladimir Putin, the Brahmos, surface-to-air cruise missile, is a shining example of Indo-Russian cooperation in the strategic areas. We want to put together the strength of Russia and India in the joint venture. Russia having the propulsion system, and we have a good guidance system through Prithvi and Agni projects. We wanted to use that guidance technology further improved for use in the cruise missile. So that is how the cooperation started between India and Russia, distributing the task equally between the two partners and also distributing the development cost of $250 million equally between the two countries. The thrust is on joint design, development and production, rather than simple sale and purchase as it used to be in the earlier decades. Brahmos is today recognised as the best cruise missile in the world and has a large international market. Interestingly, the name Brahmos was coined joining the first letters of the Indian river Brahmaputra and the Russian River Moskova, a metaphor of convergence of interests. Another exciting area of cooperation between the two countries is the energy sector. Oil exploration in India began with Soviet assistance and the country has made remarkable progress since then. The ONGC Videsh has invested well over $2 billion for the development of Sakhalin-1 oil and gas fields. Sakhalin reason was not at all developed and ONGC Videsh identified this opportunity. Any deal has to be done at commercial terms and I would say that this deal was also done at commercial terms which was the best and as per the other deals at that point of time but the question is it could have been done with XYZ, YONGC Videsh and to that extent it would be right to say that the environment, the collaboration, the friendliness which we had between the two countries did play a role. The potential for bilateral collaboration in the oil and gas sector between India and Russia is immense. The substantial financial commitment made by India has lent great credibility to this venture. Indian expertise and experience in the field of oil exploration and Indian investment in Sakhalin oil fields is an important contribution to the development of Russia's far eastern territories. The Russians have also lent valuable assistance in enabling India to set up and operate nuclear power plants to produce clean energy. We have been cooperating at the level of basic research. There is a component where several of our colleagues in the area of basic sciences have cooperated and of course the Kudankulam project where we are constructing two units and we are also now on the way to expanding the Kudankulam projects by taking up construction of four more units at that place. Now this is a beginning according to me of the international civil nuclear cooperation. The first Indian astronaut was propelled to space from a Soviet cosmodrome. For any space program, the man getting access to the outer space is a dramatic event. In this context I think the Russians have helped India very much. In 1984, Rakesh Sharma's flight into the orbit has become reality. It is a very remarkable achievement and it is a landmark event as far as the Indo-Russian cooperation is concerned. We have joined teams working and whether it is in the materials or the advanced type of mechanisms which is required we have a good cooperation in such areas. Indian endeavors to acquire the capability to launch rockets capable of placing a satellite in space have been encouraged by Russia. Arib Hutt and Bhaskar, the first Indian satellites were placed in the orbit with Russian assistance. The Russians have supported research and development to propel space launch vehicles from Indian space research organisation stations at Thumba and Sriharikota. Scientists at ISRO are working in tandem with their Russian peers on the Russian Global Navigation Satellite System GLONASS. India and Russia are now talking about advanced propulsion system that may be required in the future. Atomic and nuclear propulsion are the emerging areas of cooperation in collaborative space research. There is tremendous co-in knowledge driven industries. According to a NASCARM study, the Indian software was around 50 billion US dollars in exports in the year 2009. Whereas the Russian exports in the same year were around 3 billion US dollars there is great potential for mutually beneficial collaboration in this field. Infosys is very active in the Russian banking market has made a huge investment both in terms of adaptation of our package finical for the Russian conditions as well as by opening an office having a number of clients and having a local partner. I believe this is a trendsetter because in the future there are many other areas where Russian-Indian collaboration can happen and the IT sector. Former President Putin has been to Infosys. He came and spent time here. He saw everything. I think in Russia they are well aware of India's IT capabilities and are looking for ways and means to partner India. India has a large pool of talented software developers and young computer professionals who have contributed significantly to the unfolding global IT revolution that has transformed the way we live and work. Russia can accelerate its own development by drawing upon this precious resource base. Major Indian banks have now started operations in Russia to facilitate the growth of commercial transactions. Russia was trading India in terms of retail banking development by five to six years. And we thought that having already gone that distance in India and in some other countries already, we thought that we could apply that knowledge. And since then we've grown to a balance sheet size of $630 million and we were the fastest growing bank in Russia in 2006. Banks specializing in retail and merchant banking are a novelty in new Russia. Indian expertise in this field can act as a powerful catalyst in galvanizing the entire financial sector and boost international trade. The pharmaceutical sector has opened up new perspectives in indoor Russian cooperation. In 1998, Russia went into a ruble crisis and many companies suspended their operations or left Russia for that matter. Dr. Adis was among the very few companies which continued to do its business and it was rewarded by the customers, divided by the patients and rewarded by the distributors for our commitment to this country. Most of the employees except for seven expats, we have the rest of all the field force and the work force we have on all Russians and they are the people and it is their commitment to the company and it is their hard work which has made a difference to what we are as Dr. Adis. Indian pharmaceutical companies like Dr. Adis and Ranbaxi have a substantial presence in Russia. Unshackled from bureaucratic bottlenecks, entrepreneurs are beginning to assess the potential optimistically. An emerging area of cooperation is diamond cutting and polishing. Russia is the second largest producer of diamonds in the world. It accounts for over 20% of the global output. Most of the diamond yield comes from Sakha province, formerly known as Yakutya, lying just under the Arctic Circle. Russia, till recently, has had to depend on western countries to get these diamonds cut and polished. It couldn't optimally benefit from the value addition. All this has changed with intrepid Indians stepping out to help Russian partners. The temperature in Siberia is minus 50 degrees centigrade, I think more than six months of the year. Till date I am the only foreigner who lives there, not an Indian foreigner living there in Yakutya. We invited Indian masters to come and train local people in Yakutya and they taught them the profession of how to polish the small diamonds. And today we have only about 10 Indian artisans. The whole factory, 150 people are local people. Russian master craftsmen can now cut and polish diamonds brilliantly and are beginning to dazzle the world. Indians involved with gems are widening their horizons to designing jewelry for discerning international clientele. Russians themselves have become far more conscious of the quality of products they purchase and use. Enterprising Indians have carved out a niche in the lifestyle segment. The most famous bespoke tailoring boutique in Moscow is run as a flagship establishment by an Indian. When I came, the most strange thing was the people's attitude. I came from Germany where they don't behave with you properly. I was in Belgium, you need to speak French. And now I come to Russia where they don't understand me anyway but still they are laughing, you know, they are smiling faces. My shoes are Japanese, they are always singing this song with me. So it made you feel that this is my place, you know, this is my hometown where I would love to do business. We are already for Russian market. So we see what is good for our Russian clients. We already have office in Moscow, St. Petersburg, Kiev, Almata, Astana. At the threshold of the new millennium, both countries are facing unprecedented challenges and opportunities. The roadmap for the North-South transport corridor through Caspian has already been drawn, presenting a contemporary technological reincarnation of the old Silk Route. The present shipping route which passes through the Suez Canal and enters the Russian port of St. Petersburg is long and time-consuming. The proposed route comprises sea and land links across India, Iran and Russia and holds the promise of greatly reducing transport costs and journey time. The new route will be Mumbai, Bandrabas and Astrakhan. Multiethnic and diverse, both India and Russia face similar challenges in managing a democratic and federal polity. As Russia marks its passage from one-party rule to a multi-party democracy, the functioning of democracy in India will assume even greater relevance. Terrorism is a challenge for both India and Russia. As it is for the world at large, India and Russia are confronted with similar threats to the security and integrity of their nations. Terrorism, fueled by religious fundamentalism and encouragement of secessionism from across the borders, warranted accelerated cooperation encountering terrorism and terrorists. India and Russia stand united in their fight against terrorism. Similarly, environmental degradation is a mutually shared area of concern and both sides are endeavouring to broaden exchanges and interaction in this vital area. The two nations, with contrasting demographic profile, complement each other uniquely. Russia has an ageing population where a large segment of skilled workforce in next decades will not be optimally productive. In India, more than half the population comprises youths below 25 years of age and 36% of its population is under the age of 15 years. India, Russia and the world all have changed dramatically in the past decade or so. But the remarkable convergence of interests continues. The pursuit of peace and prosperity with equity remain our guiding stars. The cooperation on earth, water and sky continues to propel the partners in progress to reach even farther and excel past achievements. The relations are firmly rooted in enlightened perceptions of national interest. Ancient journeys undertaken by Indians and Russians continue to inspire daring voyages into the future.