India, Russia aim for $100 bn trade; Jaishankar flags imbalance

EAM S Jaishankar, in Moscow, called for decisive measures to push India-Russia trade to USD 100 billion by 2030. He stressed that resolving the massive trade imbalance, which has surged to over USD 50 billion, is a top priority for India.

External Affairs Minister S Jaishankar on Monday called for decisive measures, including the removal of non-tariff barriers, the strengthening of national payment systems, and the swift conclusion of a Free Trade Agreement, to push bilateral trade between India and Russia to USD 100 billion by 2030. Addressing the 27th India-Russia Inter-Governmental Commission (IRIGC-TEC) in Moscow alongside Russian First Deputy Prime Minister Denis Manturov, Jaishankar emphasised that resolving the mounting trade imbalance between the two nations is now "one of our foremost priorities".

Jaishankar noted that while bilateral trade in goods has expanded more than fourfold, from approximately USD 13 billion in 2021-22 to nearly USD 60 billion in 2023-24, the surge has triggered a massive widening in the trade gap from USD 6.6 billion to over USD 50 billion. "Over the last five years, bilateral trade in goods has increased more than fourfold from about US dollars 13 billion in 2021-22 to nearly US dollars 60 billion in 2023-24. This demonstrates the immense potential of our partnership. And the rapid expansion of trade has, however, been accompanied by a significant widening of the trade imbalance, which has also increased from 6.6 billion to over US dollars 50 billion," he said.

'Addressing Imbalance a Foremost Priority'

"Addressing this imbalance is today one of our foremost priorities. Excellency, colleagues, progress on market access, removal of tariff and non-tariff barriers, strengthening payment mechanisms and stronger business-to-business engagement will be critical for addressing this imbalance and achieving our shared objective of US dollars 100 billion in bilateral trade by 2030," he added.

Jaishankar pointed to ongoing discussions regarding the India-Eurasian Economic Union Free Trade Agreement and referenced wide-ranging cooperation across energy, nuclear power, metallurgy, space, railways, fertilisers, skill mobility, and connectivity.

Three Key Directions for Working Groups

To institutionalise the next phase of economic partnership, the EAM outlined three specific proposals for the commission's working groups. Jishankar outlined three key directions for working groups: prioritising tangible outcomes before the next session, strengthening alignment with private sector needs, and continuously identifying new avenues to de-risk and diversify economic ties.

He said, "Going forward, the effectiveness of our efforts should increasingly be measured by the outcomes we deliver. Each working group must prioritise deliverables to be achieved before the next session and actively engage in problem-solving."

Second, he called for deeper engagement with the private sector, noting, "Governments can create enabling frameworks, but it is our businesses that trade, invest, innovate and create jobs. Our institutional mechanisms should therefore remain closely aligned with the priorities of industry. Regular interaction with businesses and industry associations will help us to identify practical bottlenecks, improve policy responsiveness and ensure that discussions remain relevant, action-oriented and commercially meaningful. The holding of Innoprom in India in the coming weeks is a very good signal in that regard."

Third, he highlighted the need to constantly update views and explore fresh possibilities, stating, "The complicated international scenario will constantly throw up fresh ideas because we are all focused on de-risking and diversifying. Economic demands and technology requirements will add to this mix."

Reaffirming the "resilience and adaptability" of the special and privileged strategic partnership amidst a complex global landscape, Dr. Jaishankar concluded by reiterating India's commitment to fully utilising the IRIGC platform to realise its stated economic goals. Further underlining the durability of bilateral ties, Jaishankar emphasised that "the India-Russia partnership has consistently demonstrated resilience and adaptability. Even amidst a complex international landscape, our engagement has continued to deepen, reflecting the mutual interest and confidence that define our bilateral partnership."

Jaishankar Meets Putin

Earlier in the day, EAM Jaishankar met with Russian President Vladimir Putin at the Kremlin in Moscow as part of his two-day official visit to the country at the invitation of First Deputy Prime Minister of the Russian Federation Denis Manturov.

Referring to the discussions between Jaishankar and Russian First Deputy Prime Minister Denis Manturov under the India-Russia Intergovernmental Commission, Russian President Vladimir Putin said that the two sides had already worked on several important issues. "We are very glad to see you, esteemed Minister. I know that you and your Russian counterpart, Manturov, who heads the Russian part of the intergovernmental commission, have already worked hard and have undoubtedly discussed the most important issues," he said.

The India-Russia Intergovernmental Commission (IRIGC) has two divisions: the Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), co-chaired by External Affairs Minister Dr S Jaishankar from India and First Deputy Prime Minister Denis Manturov from Russia; and the Military and Military-Technical Cooperation (IRIGC-M&MTC), headed by the Defence Ministers of the two countries.

The bilateral relationship between the two countries has remained strong and stable over the years.MEA underlined how the India-Russia partnership has been among the steadiest in the contemporary era, with a shared commitment to a multipolar world as well as to expanding engagement beyond the traditional military, nuclear and space cooperation. (ANI)

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