NEW DELHI: Trade in local currencies and the balance of trade between India and Russia are both significant, said External Affairs Minister (EAM) Dr S. Jaishankar during the India-Russia Business Forum in Mumbai on Monday.
“Mutual settlement of trade in national currencies is of great importance, especially in the current circumstances. Special Rupee Vostro Accounts are currently an effective mechanism. However, even in the short run, a better trade balance with national currency settlements is the answer,” said Dr Jaishankar.
Russia’s First Deputy Foreign Minister, Denis Manturov, attended the meeting, which explored business opportunities between India and Russia. Bilateral trade between the two nations is valued at USD 66 billion and is projected to increase to USD 100 billion by 2030.
"Amid the external economic pressure Russia-India business relations continue to strengthen and the countries demonstrate their readiness for further cooperation," said Manturov.
“The balance of trade, however, needs urgent redressal, as it is currently so one-sided. Non-tariff barriers and regulatory impediments must be speedily addressed for this to happen,” Jaishankar added.
Manturov later met PM Narendra Modi. “Glad to meet Russia’s First Deputy PM Denis Manturov today. Happy to see that teams on both sides are working together to implement decisions taken during my recent visits and meetings with President Putin to further strengthen India-Russia Special and Privileged Strategic Partnership,” said PM Modi.
The technical areas where India and Russia could partner include development in the transport industry (including drones), the nuclear sector including high-power turbines, providing healthcare systems with advanced medicines and medical devices and increasing agricultural productivity.
Meanwhile, it is worth noting that India-Eurasian Economic Union trade negotiations commenced in March this year. The first-ever Bilateral Investment Forum took place in Moscow in April 2024.
Jaishankar further mentioned the need to also expedite negotiations on the Bilateral Investment Treaty. "The programme for cooperation regarding the Russian Far East from 2024-29 was signed in July during the Annual Summit. It encourages other related activities, including in the connectivity sphere," he shared.
India and Russia signed a bilateral agreement between the customs authorities of the two countries in May 2024 on Authorized Economic Operators, which has helped facilitate trade.
Connectivity is crucial for the enhancement of trade, and there are three key initiatives between India and Russia: the International North-South Transport Corridor (INSTC) from Mumbai to Moscow, the Chennai-Vladivostok Corridor, and the Northern Maritime Route.
Dr Jaishankar also spoke about the significance of education and films in strengthening societal and economic ties.
“The world is moving towards ever greater multi-polarity, and devising appropriate methods of cooperation is essential,” he said. He further noted that Russia has focused more on Asia since 2022, creating many more avenues for cooperation.
“We have a long history of strong convergence and deep friendship. A partnership between an India that has an 8 percent growth rate for multiple decades ahead, and a Russia that is a key natural resources provider and a major technology leader, will serve both of them and the world well,” he added.
On Tuesday, Dr. Jaishankar and Deputy Prime Minister Manturov will meet in Delhi for the India-Russia Inter-Governmental Commission, which will take stock of bilateral cooperation.