MENA Newswire News Desk: India is set to surpass its $100 billion trade target with Russia well ahead of the projected 2030 deadline, according to Indian External Affairs Minister S. Jaishankar. Speaking at the 25th India-Russia Intergovernmental Commission meeting in New Delhi, Jaishankar noted that while significant progress has been made in facilitating bilateral trade, further efforts are necessary to address existing imbalances and logistical hurdles.
Russia’s First Deputy Prime Minister Denis Manturov, co-chairing the session, confirmed the impressive growth in bilateral trade, which has increased more than fivefold over the past five years. Jaishankar highlighted that India’s trade deficit with Russia, reaching nearly $57 billion due to substantial crude oil imports, underscores the need for a more balanced trade relationship.
This sentiment was echoed at the recent India-Russia Business Forum in Mumbai, where he emphasized that both countries should work to diversify and equalize trade. Currently, the volume of bilateral trade stands at approximately $66 billion, and recent efforts are set to accelerate this growth trajectory.
Both Jaishankar and Manturov noted advancements in addressing payment and logistical issues that have arisen partly due to Western sanctions on Russia. Alternative currency settlements have gained traction, with nearly 90% of transactions now being conducted in local currencies. This shift, along with expanded partnerships between Indian and Russian banks, is expected to facilitate further trade expansion and mitigate challenges linked to international sanctions.
Manturov also emphasized the need to diversify the trade portfolio. While energy remains a major sector, Russia has increased imports of agricultural goods, industrial equipment, components, and pharmaceuticals from India. He noted that enhancing this trade diversity would support a sustainable economic partnership and reduce dependency on any single sector.
A key focus of the meeting was the progress of the India-Eurasian Economic Union Free Trade Agreement (FTA), an initiative both countries consider pivotal for realizing long-term trade goals. Manturov confirmed Russia’s commitment to advancing this agreement, which is expected to boost bilateral trade in goods, services, and investments. Additionally, Manturov proposed increased direct flight routes between India and Russia to support growing business and tourism links, citing that Aeroflot is currently the sole airline operating between the two countries.
The India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation (IGC-TEC) is now directing its 14 working groups and six sub-groups to expedite an economic cooperation program that extends to 2030. This initiative seeks to enhance mutual market access and streamline trade regulations to support the $100 billion target.
The session also addressed opportunities for collaboration across sectors including hydrocarbons, nuclear energy, science and technology, healthcare, and education. The external affairs ministry underscored the alignment of both nations in these sectors as an avenue for enduring partnership, and it reaffirmed both sides’ commitment to leveraging the longstanding trust and cooperation between India and Russia in achieving the trade objective.