Speaking at the India-Russia Business Summit in New Delhi this evening, Mr Modi said structural reforms of the last four years by the NDA government have led to this.
Hailing the country, the prime minister said Russian Federation has played a big role in India's story.
India has signed more than $15 billion in United States defense contracts since 2008, including for C-130J and C-17 transport aircraft, P-8I maritime patrol aircraft, Harpoon missiles and Apache and Chinook helicopters. An Indian monitoring station will be built near the Russian city of Novosibirsk in Siberia, reported ANI.
The two sides signed eight agreements including an action plan for prioritisation and implementation of cooperation in the nuclear sector and a memorandum of understanding (MoU) between the Indian Space Research Organisation (ISRO) and the Federal Space Agency of Russia ROSCOSMOS for cooperation in the human spaceflight programme. Moscow has already started delivering undisclosed number of the S-400 missile systems to Beijing.
"India gives priority to its relations with Russian Federation". The intent of the U.S. sanctions law is "to impose costs on Russian Federation for its malign behavior", not to "impose damage to the military capabilities of our allies or partners", according to a statement from the U.S. Embassy in New Delhi.
The deal, said analysts, demonstrates that India is seeking a balance as it steadily grows strategic ties with Washington, but is unwilling to forgo its long-standing defense partnership with Russian Federation. "We have agreed to continue cooperation to these global organisations", PM added. During the 19th annual summit, Modi and Putin discussed ways to boost the strategic partnership in key areas, including defence, counter-terrorism, energy and space.
"The thing to note is that sanctions will only come into place when India makes payments for these weapons which is not likely to happen till much after the deal is signed", said Pramit Pal Chaudhuri, Foreign Affairs Editor at Hindustan Times. However, the two sides failed to conclude two other major deals, for Stealth frigates and assault rifles, that were reportedly ready, as officials said further negotiations were needed.
"We have set a target of increasing trade turnover to $30 billion. and increasing investments to $15 billion by 2025", Putin said during a press conference with Modi on Friday.
PM Modi received Putin at the Hyderabad House and the two leaders warmly shook hands and hugged each other obliging cameramen.
U.S. Secretary of State Mike Pompeo said during a visit to New Delhi last month that discussions were continuing over whether to grant waivers to India from U.S. sanctions on Russian Federation and Iran, India's second-largest oil supplier. The deal figured in discussions in New Delhi when U.S. Secretary of State Mike Pompeo visited India last month.