India Aims To Reach $100 Billion Trade Target With Russia Ahead Of 2030, Says Jaishankar

India is on track to achieve a significant milestone in its economic partnership with Russia, with External Affairs Minister S. Jaishankar expressing confidence that the $100 billion trade target set for 2030 will be met well ahead of schedule.

At the 25th India-Russia Intergovernmental Commission meeting in New Delhi, Jaishankar and Russia's First Deputy Prime Minister Denis Manturov discussed the robust growth in bilateral trade, which has expanded more than five-fold over the past five years.

Photo Credit: PTI

During his opening remarks, Jaishankar emphasized the "trust and confidence" underpinning Indo-Russian relations, which have fostered complementary economic growth. He noted that while trade, currently estimated at $66 billion, has been impressive, achieving balance will require overcoming logistical challenges and resolving issues related to payment mechanisms.

Jaishankar's comments built on remarks he made earlier at the India-Russia Business Forum in Mumbai, where he underscored the need to address India's trade deficit with Russia, which has ballooned to nearly $57 billion due to India's large-scale imports of Russian crude oil since 2022.

Trade Milestones and Key Sectors

Highlighting the shared commitment to trade expansion, Manturov pointed out that India has become Russia's second-largest trading partner. Russian imports from India now include agricultural products, industrial equipment, components, and pharmaceuticals. He noted that trade had grown by 9% in the first eight months of 2024, underscoring Russia's dedication to reducing the trade imbalance and diversifying the trade portfolio.

As part of the broader economic strategy, Russia is also committed to signing a Free Trade Agreement (FTA) between India and the Eurasian Economic Union, as well as a bilateral agreement focused on services and investments. Manturov confirmed that the settlement of trade in local and alternative currencies has reached 90%, a shift largely driven by Western sanctions on Russia, and that steps are underway to enhance cooperation between Indian and Russian banks. He also advocated for increasing direct flights between the two countries, as only Aeroflot currently operates 12 flights weekly from Moscow and Ekaterinburg to New Delhi and Goa.

Focus on Expanding Cooperation and Market Access

The discussions in New Delhi included enhancing collaboration in sectors such as hydrocarbons, nuclear energy, connectivity, agriculture, science and technology, pharmaceuticals, healthcare, fertilizers, and education. Jaishankar and Manturov directed 14 working groups and six sub-groups under the Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation (IGC-TEC) to accelerate the completion of the economic cooperation program through 2030. They also emphasized steps to increase market access to help achieve the ambitious $100 billion trade target.

Manturov echoed Jaishankar's sentiments on the need for progress in tackling payment and logistics issues, acknowledging the strides made so far but highlighting that more work remains.