New Delhi: India is confident of achieving USD 100 billion in annual bilateral trade with Russia well ahead of the timeline of 2030 and a more substantive relationship between the two nations has a larger global resonance, External Affairs Minister S Jaishankar said on Tuesday.
There have been challenges to trade, especially with regard to payments and logistics and perceptible progress has been made in that regard, but there is still some work to be done, he said.
The external affairs minister was speaking at the 25th India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).
Speaking at the India-Russia Business Forum in Mumbai, Indian Minister of External Affairs Dr S Jaishankar said by 2030 India-Russia bilateral trade will cross USD 100 billion.
He said, “Our bilateral trade is today at USD 66 billion. This makes the goal of reaching USD 100 billion by 2030 more than realistic. 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 India-Eurasian Economic Union trade-in goods negotiations commenced in March this year. We need to vigorously take it forward.”
The minister outlined ten critical areas of development that signal a promising trajectory for strengthening bilateral trade and investment relations between the two countries.
Highlighting the vision set forth by the leaders of India and Russia, Jaishankar underlined opportunities for deeper economic engagement, aiming for a Comprehensive Economic Partnership by 2030.
Jaishankar emphasised the importance of accelerating negotiations on a Bilateral Investment Treaty to bolster investor confidence.
Mutual settlement of trade in national currencies has been prioritised amid global financial shifts. Special Rupee Vostro Accounts have been set up as an effective mechanism, and Jaishankar stressed the need for a more balanced trade supported by these currency settlements.
The May 2024 bilateral agreement on Authorized Economic Operators between Indian and Russian customs authorities has made a positive impact on trade facilitation and ease of business, according to Jaishankar.
He emphasized 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 vital for enhancing logistical networks between the two nations.
He said, “The three connectivity initiatives between us, as mentioned by the First DPM as well – INSTC, Chennai-Vladivostok Corridor and the Northern Maritime Route – all need continued attention if we are to realise full potential.”
Beyond trade, he also emphasised the importance of collaborative efforts in sectors such as education and film, which he sees as instrumental in forging a broader cultural and economic bond between India and Russia.
He said, “A growing Russian appreciation of Make In India as a program to deepening business will certainly help take forward our cooperation in many many domains. Importance of non-economic domains, such as education and film as contributions to a larger societal but also Economic connect between us.”
Jaishankar underscored that these developments are in line with the leader’s vision for a robust economic partnership, reflecting the goals of the Annual Summit.
He revealed that work on a Programme of Economic Cooperation till 2030 is already underway, tasked with creating a sustainable framework for growth.
While expressing optimism, Jaishankar acknowledged some challenges, including banking and payment-related issues, logistical hurdles in shipping, insurance and reinsurance, and market access.
He urged both governments to focus on creating solutions that would address these concerns to meet the comfort levels of businesses engaged in bilateral trade.
