New Delhi, Nov 11 :
India-Russia trade currently is at $66 billion and this will increase to $100 billion by 2030, External Affairs Minister (EAM) S Jaishankar said on Monday, addressing the India-Russia Business Forum in Mumbai.
“Our (India-Russia) bilateral trade is today at USD 66 billion. This makes the goal of reaching USD 100 billion by 2030 more than realistic,” Jaishankar said, highlighting significant developments in relations between the two nations.
The target of $100 billion by 2030 was set by both the countries during the annual leaders’ summit in July this year.
The balance of trade, however, needs urgent redressal since it is so one-sided. It is imperative that non-tariff barriers and regulatory impediments are speedily addressed for this to happen,” the EAM further said.
Jaishankar also said that both India and Russia will have to find solutions that work to the comfort level of those actually involved in trade.
“A partnership between an India that has an 8 per cent growth rate for multiple decades ahead, and a Russia that is a key natural resources provider and a major technology leader, will serve both of them and the world well,” he said.
Trade settlement in local currencies is of great importance
Jaishankar also spoke about the importance
India-Russia trade
and the need of settling bilateral trade with Russia in local currency.
“Mutual settlement of trade in national currencies is of great importance, especially in the current circumstances. Special Rupee Vostro Accounts are right now an effective mechanism,” he said.
“However, even in the short run, a better trade balance with national currency settlements is the answer,” the minister further said.
“We are all aware of the complementary nature of our respective economies. If we recognise that fully, then it also follows that our approach is not transactional but aimed at building long-term partnerships,” he said.
to Jaishankar, signing of a bilateral agreement between the customs authorities of India and Russia in May 2024 on Authorised Economic Operators, “has had a big impact on smoothening the ease of doing trade.”
Strong resolve to boost connectivity
The India-Russia Business Forum in Mumbai was also attended by Russia’s first Deputy Prime Minister Denis Manturov, who is on a two-day India visit.
Organised by the Business Council for Cooperation with India and the Federation of Indian Chambers of Commerce and Industry (FICCI), the event is a crucial platform for fostering deeper economic links between the two nations.
In his address, Jaishankar further emphasised on the continued development of the three major connectivity corridors – the International North-South Transport Corridor (INSTC), the Chennai-Vladivostok Maritime Corridor, and the Northern Maritime Route – which are crucial for enhancing logistical networks between the two nations.
The three connectivity initiatives between us, as mentioned by the First DPM (Manturov) as well – INSTC, Chennai-Vladivostok Corridor and the Northern Maritime Route – all need continued attention, if we are to realise full potential,” the EAM said.
Russia’s growing appreciation of Make In India
The minister also said that there has been a growing appreciation from Russia of Make In India as “a program to deepen business will certainly help to take forward our cooperation in many many domains.”
“The importance of non-economic domains, such as education and film as contributions to a larger societal but also an economic connect between us,” he said.
Jaishankar further said that in energy domains such as oil, gas, coal or uranium, India will “always be a major player in the international markets.”
“This applies as well to the demand for fertilisers of various kinds. Constructing a mutually beneficial arrangement will help us both address the volatility and the uncertainty of our times,” he said.
“The emergence of a global workplace is also today an increasing reality. Demographic unevenness has created demand and supply imbalances across the world. India and Russia can be partners in this regard as well. It would require a focused initiative that customises human resources for the Russian market. That is best done with the active participation of businesses,” the EAM said.
In a post on X, after his address, Jaishankar said that he is “confident that today’s discussions will lead to a successful India – Russia Intergovernmental Commission meeting tomorrow.”
India and Russia will co-chair the Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IGC-TEC) meeting in New Delhi on Tuesday, November 12.
As per the Russian embassy, the gathering will focus on expanding bilateral trade, economic ventures, and scientific cooperation between the two nations.
Established in 1992, the IGC-TEC oversees bilateral economic cooperation and monitors progress in trade and economic cooperation.
The meeting is reportedly expected to address key issues, including improving payment mechanisms between the two countries, trade settlement in national currencies, and a joint venture project for building Vande Bharat trains by Russia’s Transmashholding (TMH) and connectivity initiatives.
