REFLECTIONS ON POLITICAL ECONOMY OF INDO-SOVIET RELATIONS

This critical analysis examines the political economy dimensions of India-Soviet Union relations during the mid-1980s, investigating the complex interplay of strategic interests, economic exchanges, and ideological affinities that characterized this important bilateral relationship. The article explores the historical evolution of Indo-Soviet relations from the early Cold War period through various phases of cooperation and examines the economic foundations of the strategic partnership. The research analyzes the pattern of economic exchanges between India and the Soviet Union, including trade composition, technology transfer, development assistance, and energy cooperation. The study assesses the political and strategic calculations underlying the relationship from both Indian and Soviet perspectives. The article also examines how changing global dynamics, including evolving superpower relations and economic transformations, affected the Indo-Soviet partnership. Furthermore, the analysis evaluates the sustainability of the relationship in the context of India's economic reforms and changing international alignments.

The India-Soviet Union relationship represented one of the most significant North-South partnerships during the Cold War, with this article providing a comprehensive analysis of its political economy dimensions in the mid-1980s. The research begins by examining the historical evolution of Indo-Soviet relations, tracing the development from early diplomatic engagement through the strategic partnership that emerged in the 1970s and continued into the 1980s. The analysis explores the economic foundations of the relationship, investigating the pattern of bilateral trade characterized by Indian exports of primary products and manufactured goods in exchange for Soviet machinery, equipment, and defense systems. The article examines the rupee-rouble exchange mechanism and its role in facilitating bilateral trade outside the dollar-dominated global trading system. The study assesses development cooperation, analyzing Soviet assistance in key industrial projects including steel plants, power generation, and heavy industry development that contributed to India's public sector expansion. The research evaluates defense cooperation, examining arms transfers, technology sharing, and military training that enhanced India's defense capabilities and strategic autonomy. Based on the comprehensive assessment, the article analyzes both the achievements and limitations of the Indo-Soviet economic relationship and identifies emerging challenges as both countries underwent significant economic transformations. The findings provide valuable insights into how middle powers in the global South navigated Cold War alignments while pursuing autonomous development strategies and contribute to understanding the political economy of strategic partnerships in divided international systems.