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President Vladimir Putin holds meeting with Government members

Ahead of the Russian President's arrival, his top foreign policy aide Yury Ushakov had confirmed that the Russian President will oversee the signing of the S-400 air defence systems deal.

The two sides "welcomed the conclusion of the contract for the supply of the S-400 long-range surface-to-air missile system to India", said a detailed joint statement issued after the two leaders met for the 19th edition of the summit. The official also asserted that the negotiations for S-400 precede USA sanctions against Russian Federation by a long period.

PIBPrime Minister Narendra Modi today said India is emerging as a shining star among world economies and the government is working on a number of reforms to boost this.

Russian Federation is India's largest arms supplier, a relationship that dates back to the Cold War.

In recent weeks, US officials have declined to make any promises about what would happen if India went ahead with the S-400 purchase.

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The move by the central and state governments will cost the exchequer a significant amount but will provide relief for consumers. Except the Current Account Deficit (CAD), which is directly linked to oil prices, all other data are encouraging, he said.

India therefore could expect to gain a sympathetic ear if it seeks a waiver from the U.S. sanctions, but President Donald Trump's administration has signalled this is unlikely.

The strong statement denouncing cross-border terrorism assumes significance in the wake of India's long-standing ally Russian Federation warming up to Pakistan recently.

India has already given indications that it will go ahead with the deal notwithstanding the USA sanctions.

While China is largely seen as a rival, India is an important USA ally. India had last month firmly told the USA at the "2+2" dialogue that it takes note of the historic nature of India-Russia defence relationship as also legacy issues and keep the missile deal out of the sanctions' regime.

Russian President Vladimir Putin and India's Prime Minister Narendra Modi attend a presentation of a joint statement after their delegation level talks at Hyderabad House in New Delhi, India, October 5, 2018. The deals emerging from the visit will cement and amplify the continued strength of the India-Russia relations even as the US-India relations continues to grow as the US-Russia relationship continues to plummet.

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The threat of United States sanctions against buyers of Russian weapons - imposed most recently on China - is not expected to affect the Indian contract, which covers five regiments worth, Putin's foreign affairs aide Yuri Ushakov said.

New Delhi, which does not want to jeopardize its growing ties with Washington, is optimistic about avoiding US sanctions. The S-400 systems' deliveries to India will begin in the next two years.

Russian Federation is a major energy partner of India, he said, adding there is a need to increase cooperation in new and renewable energy also.

A major part of discussion between government-to-government and business-to-business has been the eventuality of any form of sanctions by the U.S. that could restrict trade between the two countries.

Experts fear India is flexing its military muscles as Mr Modi stands up to China's People Liberation Army and Beijing's influence around the Indian Ocean.

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