1 week ago
India and Russia Set $100 Billion Trade Goal by 2030
India and Russia want to increase their trade to $100 billion by 2030.
Their trade has already grown sharply in recent years.
India buys large amounts of Russian oil and fertilisers.
This has created a large trade gap, meaning India buys much more from Russia than it sells.
India’s foreign minister said the countries need easier market access and better payment systems.
Russia said it would continue supplying energy and fertilisers.
Both countries also want to trade more machinery, food, medicines and other products.
They are discussing a Free Trade Agreement to help achieve these goals.
The leaders are also expected to meet at upcoming international summits.
India and Russia outlined a shared target of $100 billion in bilateral trade by 2030.
Bilateral trade rose from $13 billion in 2021-22 to nearly $60 billion in 2023-24, while India’s trade deficit with Russia exceeded $50 billion.
S. Jaishankar said market access, tariff reductions, payment mechanisms and stronger business ties are needed to address the imbalance.
Russia assured India of continued energy and fertiliser supplies and called for broader trade in machinery, food, pharmaceuticals and industrial goods.
The two sides are negotiating a Free Trade Agreement through the Eurasian Economic Union ahead of upcoming SCO and BRICS meetings.
- Who
- External Affairs Minister S. Jaishankar, Russian President Vladimir Putin and Russian First Deputy Prime Minister Denis Manturov discussed the trade relationship.
- What
- India and Russia set a goal of $100 billion in bilateral trade by 2030 while discussing the trade imbalance, supply assurances and a possible Free Trade Agreement.
- Where
- Jaishankar met Putin at the Kremlin in Moscow, while the 27th session of the Russian-Indian Intergovernmental Commission was held in Moscow.
- When
- The discussions took place on Monday; the article also refers to upcoming meetings in September, including the BRICS Summit and Putin’s expected September 12-13 visit to India.
- Why
- The countries want to expand and diversify trade, address India’s growing trade deficit with Russia and strengthen cooperation in energy, agriculture, manufacturing and other sectors.
India’s Trade-Balance Priorities
Russia’s Expansion Priorities
Addressing the imbalance
India’s Trade-Balance Priorities
India considers reducing the widening trade deficit a foremost priority and is seeking better market access, fewer tariff and non-tariff barriers, improved payment mechanisms and stronger business-to-business engagement.
Russia’s Expansion Priorities
Russia is emphasizing increased trade volumes while seeking broader participation by Indian businesses and more diversified commercial exchanges.
Trade composition
India’s Trade-Balance Priorities
India wants conditions that can help expand its exports and narrow the gap created partly by large purchases of Russian crude oil and fertilisers.
Russia’s Expansion Priorities
Russia wants to move beyond fuel and fertiliser exports by expanding agricultural and food products, machinery, metals, forestry products and energy-related cooperation.
Key facts
- Trade target
- $100 billion in India-Russia bilateral trade by 2030
- Recent trade
- Nearly $60 billion in 2023-24, up from $13 billion in 2021-22
- Trade imbalance
- India’s trade gap with Russia increased from $6.6 billion to more than $50 billion
- Key Indian imports
- Russian crude oil and fertilisers
- Trade agreement
- A Free Trade Agreement is being negotiated through the Eurasian Economic Union
- Energy assurance
- Russia said it was ready to continue uninterrupted energy and fertiliser supplies
- Upcoming engagement
- The BRICS Summit is scheduled to take place in Delhi, with Putin expected to visit India on September 12 and 13
Quotes
Vladimir Putin
President of Russia
“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”
financialexpress.com
“I am pleased to note that our trade has increased this year. It declined slightly last year, but it is growing this year …We are doing everything we can to fully meet the needs of Indian farmers and the agricultural sector, increasing these supplies and standing ready to continue doing so”
financialexpress.com
Sources
Related news
India and Russia Set $100 Billion Trade Target by 2030
Putin and Jaishankar Advance India-Russia Economic Cooperation
Putin Pledges More Fertiliser as India-Russia Trade Accelerates
Modi to Focus on Critical Minerals and Trade Relations
Putin Credits Modi as India-Russia Trade Growth Continues
Russian Fertiliser Supply Assurance Sends Indian Stocks Sharply Higher
Goyal Defends India’s 7.8% GDP Growth Amid Data Debate
Manipur Census Deferment Welcomed as Step Toward Public Aspirations
UPSC Key Covers SCO, Electoral Rolls, Economy, Defence and Climate
West Bengal CM Crushes Nearly 2 Lakh Seized Syrup Bottles
Modi Highlights India’s Growing Avocado Market and Farmer Gains
