External Affairs Minister S. Jaishankar stated on Monday at the India-Russia Business Forum in Mumbai that India-Russia trade, currently valued at $66 billion, is expected to grow to $100 billion by 2030.
“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 emphasized notable advancements in the relationship between the two nations.
External Affairs Minister S Jaishankar and Russia's First Deputy Prime Minister Denis Manturov at the India-Russia Business Forum, Mumbai, on November 11, 2024. Source: X | @DrSJaishankar
The $100 billion target for 2030 was established by both countries at 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 mentioned that both India and Russia need to find solutions that are acceptable to those directly 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.
The settlement of trades in local currencies is highly significant
Jaishankar also discussed the significance and necessity of settling bilateral trade with Russia in local currencies.
“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.
Jaishankar stated that the signing of a bilateral agreement between the customs authorities of India and Russia in May 2024 on Authorized Economic Operators "has significantly impacted the smoothness of trade."
Firm determination to enhance connectivity
The India-Russia Business Forum in Mumbai was also graced by the presence of Russia’s First Deputy Prime Minister, Denis Manturov, who is on a two-day visit to India.
The event, organized by the Business Council for Cooperation with India and the Federation of Indian Chambers of Commerce and Industry (FICCI), serves as a vital platform for strengthening economic ties between the two countries.
During his speech, Jaishankar highlighted the ongoing development of three key connectivity corridors – the International North-South Transport Corridor (INSTC), the Chennai-Vladivostok Maritime Corridor, and the Northern Maritime Route – all of which are essential for improving logistical networks between India and Russia.
“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 increasing recognition of Make in India
The minister also mentioned that Russia's growing recognition of Make in India as "an initiative to strengthen business ties will undoubtedly advance our cooperation across numerous sectors."
“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 also stated that India will "remain a key player in the international markets" in energy sectors like oil, gas, coal, and uranium.
“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 following his speech, Jaishankar stated that he is “confident that today’s discussions will lead to a successful India - Russia Intergovernmental Commission meeting tomorrow.”
India and Russia will jointly chair the Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation (IGC-TEC) meeting in New Delhi on Tuesday, November 12.
According to the Russian embassy, the meeting will focus on enhancing bilateral trade, economic initiatives, and scientific collaboration between the two countries.
Founded in 1992, the IGC-TEC is responsible for overseeing bilateral economic cooperation and tracking advancements in trade and economic relations.
The meeting is expected to address key topics such as improving payment systems between the nations, trade settlements in national currencies, and a joint venture to develop Vande Bharat trains with Russia’s Transmashholding (TMH), along with connectivity projects.
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