Progress in Trade Challenges
Speaking at the 25th India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), External Affairs Minister S Jaishankar emphasized the necessity for a more balanced trade relationship between India and Russia. He acknowledged the progress made in addressing challenges related to payments and logistics, while highlighting that further efforts are required to facilitate trade.
Ambitious Trade Goals
Jaishankar expressed confidence in achieving the target of USD 100 billion in annual bilateral trade with Russia ahead of the 2030 timeline. He described the evolving relationship as having significant global implications, especially in an increasingly multipolar world. “A more substantive relationship between us has a larger resonance,” he noted during his opening remarks.
Moscow’s Economic Interests
The minister welcomed Russia’s growing interest in India’s economic landscape, particularly in the “Make in India” initiative. He pointed out the complementary nature of both economies and the trust built over years, which has led to an impressive increase in bilateral trade, currently estimated at USD 66 billion.
Addressing Current Constraints
Jaishankar stressed the need to address existing trade constraints to ensure a more equitable exchange. He called for progress in negotiations concerning the India-Eurasian Economic Union Free Trade Agreement (FTA) to facilitate smoother trade processes.
Key Areas of Cooperation
The external affairs minister highlighted vital areas of cooperation, including Russia’s supply of fertilizers, crude oil, and coal to India. He acknowledged that Russia has become a major supplier of fertilizers and emphasized the importance of India’s pharmaceutical industry as a reliable source for Russia.
Connectivity Projects
Jaishankar also underscored the importance of various connectivity initiatives, such as the International North-South Transport Corridor and the Chennai-Vladivostok Corridor. He expressed a commitment to advancing these projects to enhance trade and collaboration.
Manturov’s Insights
The Russian delegation, led by First Deputy Prime Minister Denis Manturov, noted the rapid growth in trade between the two nations, with a fivefold increase over the past five years. Manturov confirmed Russia’s commitment to signing a free trade agreement with India, which aligns with the needs of both countries’ business communities.
Looking Ahead
In closing, Jaishankar reiterated the importance of collaboration for food, energy, and health security, emphasizing that shared initiatives are crucial for both nations as they navigate the complexities of the global economy.
