Indian Minister of External Affairs Dr. S. Jaishankar said that the India-Russia bilateral trade has the potential to reach USD 100 billion by 2030. He was addressing the India-Russia Business Forum here in Mumbai. Jaishankar said that the current volume of trade stands at USD 66 billion, adding, “USD 100 billion, therefore, by 2030 is well within the realms of possibility.”
Nevertheless, Jaishankar even echoed the imbalance that must be addressed in the two-way trade. He added, “The balance of trade needs urgent redressal as it remains too one-sided.” For that, he called for the elimination of non-tariff barriers and other regulatory challenges. He also referred to the ongoing negotiations on trade with the Eurasian Economic Union started in March this year. The discussions in this regard need to be progressed actively to advance the trade ties.
The minister, Jaishankar, enumerated ten priority areas of development that would help advance the growth of bilateral trade and investment. He went further to reiterate that the vision stood between the two leaders of India and Russia aimed at establishing a Comprehensive Economic Partnership by 2030. Of course, the most important item in this vision pertains to speeding up the negotiations on the Bilateral Investment Treaty, which will go a long way in building investor confidence and offering a better investment climate.
Another major initiative is the agreement on settling trade in national currencies to reduce dependence on international finance. He added that the authorities have opened “effective arrangement” Special Rupee Vostro Accounts to allow these transactions to take place. Jaishankar underlined that all this will lead to a more balanced trade relationship.
He also mentioned that Indian and Russian customs authorities reached an agreement on Authorized Economic Operators in May 2024. This has already ensured better trade facilitation and smoother business processes between the two countries.
On connectivity projects, Jaishankar outlined three major projects in the logistics dimension: the International North-South Transport Corridor, the Chennai-Vladivostok Maritime Corridor, and the Northern Maritime Route. These corridors are vital to boosting trade logistics between India and Russia.
Besides, Jaishankar mentioned the necessity to develop cooperation in areas other than trade, like education and film. He indicated that such spheres would allow the building of a closer cultural and economic relationship between the two countries.
While sounding optimistic, Jaishankar did acknowledge some challenges: banking, shipping logistics, and market access. He urged both governments to think through solutions together to reassure these concerns and incentivize businesses involved in bilateral trade.
ANI