Trade between India and Russia has surged more than fivefold over the past five years, noted Russian First Deputy Prime Minister Denis Manturov during his visit. External Affairs Minister S. Jaishankar and Manturov co-chaired the 25th session of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation held in New Delhi on Tuesday.
Currently, bilateral trade between the two countries stands at over $60 billion, and Jaishankar expressed confidence that the $100 billion target could be reached by 2030. He also highlighted India’s hope for a more balanced trade relationship in the future.
Progress Despite Challenges in Payments and Logistics
Jaishankar acknowledged that while trade has seen challenges, particularly in payments and logistics, both nations have made progress in overcoming these barriers. However, some issues still need to be resolved to fully streamline trade.
Focus on Balancing Trade and Expanding Agreements
To make trade more balanced, Jaishankar suggested that India and Russia should address existing limitations and actively work on further trade agreements. He emphasized that completing a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU) could greatly benefit both sides.
Growing Partnership with “Make in India” Initiative
Russia’s interest in India’s “Make in India” program is also increasing, and Jaishankar encouraged joint ventures and collaboration between Indian and Russian businesses. He noted that trade between India and Russia has now reached $66 billion, reflecting India’s strong economic growth and its commitment to being a reliable trade partner.
Key Imports and Exports Between India and Russia
Russia has become a key supplier of fertilizers, oil, coal, and uranium for India. Meanwhile, Indian pharmaceutical products are increasingly important for Russia, providing affordable healthcare solutions. Both countries are also exploring ways to support talent mobility between them, with a focus on skills relevant to the Russian job market.
Significant Growth in Trade and Currency Cooperation
First Deputy Prime Minister of Russia Denis Manturov shared that trade between India and Russia has grown five times in the last five years. Around 90% of trade transactions are now done in national or alternative currencies, reducing reliance on the US dollar. He also called for more direct air travel between India and Russia to strengthen connections further.
Cooperation in Energy, Space, and Technology
India and Russia are expanding their collaboration in various sectors, including energy, microelectronics, and digital technology. They are also working together on space exploration projects, with Russia offering support for India’s Gaganyaan space mission and satellite navigation efforts.
Educational and Cultural Exchange Programs
Both countries are looking at mutual recognition of educational qualifications to make it easier for students and professionals to work in each other’s countries. Additionally, India and Russia plan to increase cultural exchanges and tourism, with a working group focused on these efforts.
Closing the Deal: Signing of Protocols for Future Goals
The meeting concluded with Jaishankar and Manturov signing a protocol to confirm their plans for future cooperation. Later, Manturov met with Finance Minister Nirmala Sitharaman to discuss banking cooperation and an agreement to protect investments between India and Russia.
