Trade: India’s trade with Russia may reach $100 bn before 2030, says EAM
Virendra Pandit
New Delhi: The bilateral trade between India and Russia is expected to reach from the existing USD 66 billion to USD 100 billion well before 2030, External Affairs Minister S. Jaishankar said on Tuesday.
“India is confident of achieving the USD100 billion mark 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,” he was quoted as saying in media reports.
Although there have been challenges to trade, especially with regard to payments and logistics, and perceptible progress has been made in that regard, there is still some work to be done, he said, addressing the 25th India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).
The Russian delegation at the meeting was led by First Deputy Prime Minister Denis Manturov.
In his televised opening remarks at the event, Dr. Jaishankar said the bilateral trade needs to be “more balanced and that would require addressing current constraints and undertaking greater facilitative efforts.”
“As two major nations in an increasingly multipolar world, a more substantive relationship between us has a larger resonance,” he said.
New Delhi welcomes and fully reciprocates Moscow’s growing interest in exploring economic opportunities in India.
“Our economies are not only complementary in many respects but benefit from the trust and confidence built over many years. The growth in bilateral trade is now estimated at USD 66 billion and it is impressive,” he said.
“Our goal is that it needs to be more balanced and that would require addressing current constraints and undertaking greater facilitative efforts. Making it easier to do trade should be accompanied by progress in the negotiations on the India-Eurasian Economic Union FTA,” he said.
Dr. Jaishankar said New Delhi has noted Moscow’s growing interest in the Make in India program and it would encourage joint ventures and other forms of collaboration between the two sides.
“I am confident that we will achieve the trade target of USD 100 billion by 2030, well before that,” he said.
Highlighting India’s impressive growth rate in the recent past, he said “India that has many decades of 8 percent growth ahead of it obviously values a reliable partner when it comes to resources, technology and best practices.”
Speaking about Russia’s supply of fertilizers, crude oil, and coal to India, he said “Russia has emerged as a major source of fertilizers for us. Its supply of crude oil, coal, and uranium is indeed important. Similarly, India’s pharmaceutical industry has emerged as an affordable and reliable source for Russia.”
“Looking ahead we are also exploring the mobility of talent, and skills, and customizing them for the Russian market has to be a shared enterprise,” he said.
About the importance of various connectivity projects, Dr. Jaishankar said, “Our joint endeavors regarding connectivity, such as the International North-South Transport Corridor, the Chennai-Vladivostok Corridor, and the Northern Sea Route must go forward.”
“We will also be discussing cooperation critical for our food, energy, and health security,” he added.
In his remarks, Russian leader Manturov also delved into fast-evolving trade ties between India and Russia.
“Over the last five years, the trade turnover of our country has grown more than fivefold. And India is now the second country among all the foreign economic partners of Russia,” he said.
“Among other things, we confirm our strong commitment to signing the free trade agreement between the EEU (Eurasian Economic Union) and India, as well as the bilateral agreement on services and investments. This fully meets the needs of our business community,” he said.
