Prime Minister Manmohan Singh's meeting with Russian President Vladimir Putin at the Kremlin on Monday will help Indian nuclear power establishment and intensify India's strategic ties with Russia.
While Dr Singh termed Russia as 'our time-tested friend', Putin said, "Russia has always stood by and will always stand by India."
Singh is in Moscow to attend the 60th anniversary celebrations of its victory in World War II.
Putin met Singh in spite of his busy schedule on Monday and despite the limited number of bilateral meetings, which suggests Russia's continuing engagement with India.
The scheduled meeting of 30 minutes stretched to 40 to 45 minutes.
While briefing the press, National Security Advisor M K Narayanan and Foreign Secretary Shyam Saran termed it as a win-win meeting for both because the two countries do not have any contentious issues between them.
Narayanan said that the meeting was held in an excellent ambience in the Kremlin.
Russia resolves not to forget history
Expectedly, both leaders discussed the issue of low level of trade between two countries. Since 1992 trade between two countries has been far from satisfactory.
In 1990-91 it was over $ 5 billion. In 2003-04 it was less than $ 2 billion. Trade has now started look up but does not match military or energy engagement between the two nations.
Manmohan meets Putin at the Kremlin
Narayanan said, "The fact that the extent of economic relations does not mirror Indo-Russian strategic relations was discussed in the meeting."
In view of the dull trade figures it was decided between the two leaders to set up a joint study group to study the feasibility of a comprehensive economic agreement.
Narayanan said Dr Singh took up the issue of nuclear energy. He was highly appreciative of Russia for its help in building the Kudankulam Atomic Power Project.
The project, which has two units, is expected to start energy production in 2007. India does not want to be behind schedule in view of the critical energy situation in many states in the country.
India's nuclear energy sector will get a boost if, as promised during the meeting, Putin takes up the other requirements of Indian nuclear energy sector.
Russia has helped India in building the Reactor Pressure Vessel of the Kudankulam Atomic Power Project, which is considered to be the heart of the nuclear power plant.
The Reactor Pressure Vessel was shipped by Russia from St Petersburg early this year.
The energy issue is also important because on May 4 the Indian cabinet passed the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Bill, which is India's answer to the world community's concerns over nuclear proliferation.
As India is now set to take up the energy issue in an unprecedented manner and is expected to make huge investments in the sector, it needs to tell nuclear technology suppliers that its legal system has been strengthened further.
The new law will prevent proliferation of weapons of mass destruction and fulfill requirements of UN Security Council Resolution 1540. The main opposition Bharatiya Janata Party is expected to support the bill.
American officials have also expressed satisfaction about the speed with which India is set to strengthen its legal system and safety system in the energy sector.
This bill, which will be tabled in Parliament, is in the interests of Russia, America and other countries from which India seeks help in nuclear energy production.
President Putin has said he would take up the issue as soon as he is free of his Victory Day celebration engagements.
It is believed that if and when America actually offers [so far US has only agreed to talk about it] nuclear power technology, India will need bargaining power.
If other countries offer better technology or terms and conditions, then India would like to consider those options as well.
Narayanan said that the brief visit of Dr Singh was not merely ceremonial but very productive.
This is the second meeting between the two leaders in six months after Putin's visit to Delhi last December.
Dr Singh is scheduled to visit Russia around November this year.
More from rediff