India and Russia are posied to strengthen bilateral trade ties with the arrival of Russia  President Vladimir Putin in New Delhi on Wednesday.

Putin and Indian Prime Minister Narendra Modi are expected to sign more than 10 deals covering the energy and military sector, with officials from both sides giving emphasis on the potential of two oil deals and a pipeline that would run between both nations.

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While a joint oil deal could inject billions to Indian and Russian economies, observers are skeptical that the project could come into fruition.

India's state-run Oil and Natural Gas Corporation is looking to gain a 25 percent interest in Russia's Yurubcheno-Tokhomskoye and Vankor oil fields, but the intial offer from Moscow is only at 10 percent, New Delhi officials said.

There are also doubts on the viability of the proposed pipeline, with analysts speculating that the line would either need to cross embattled Afghanistan and longtime Indian foe Pakistan, or China.

Despite this, both sides remain optimistic.

Putin needs to step up efforts and show the West that he still has "friends in the world" in light of Russia's isolation owing to the U.S.- and EU-levied sanctions, said Gulshan Sachdeva of the Jawaharlal Nehru University in India.

Both Modi's and Putin's styles include the announcement of big schemes, although whether they are executed is an altogether different matter, Sachdeva said.

Moscow and New Delhi are longtime allies, with warm relations dating back as early as the Soviet era. 

India has been firm against joining the West-initiated sanctions against Russia even as Modi works to boost India-U.S. relations since taking office in May.

Officials from both sides are hopeful that Putin's 3-day visit to India will reignite economic ties, which has thus far, remained sluggish.

Bilateral trade targets set in 2010 were forecasted at US$20 billion by 2015. But with only months left before the intended deadline, the two countries have found themselves short of about half the projected amount.

There is still much to be done, analysts said, noting that the Russian economy has not been performing as well as the two nations had expected.

TagsIndia-Russia relations, economic trade relations, Energy industry, Russian sanctions