New Delhi: India is optimistic about achieving the ambitious $100 billion trade target with Russia well before 2030, according to external affairs minister S Jaishankar. Speaking at the Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation (IGC-TEC) meeting alongside Russias first deputy prime minister Denis Manturov, Jaishankar highlighted the significant progress in resolving trade challenges, particularly regarding payments and logistics. However, he noted that some hurdles remain to ensure a more balanced trade relationship.Addressing the Trade ImbalanceIndias trade deficit with Russia, currently at $57 billion, stems primarily from the large-scale import of Russian crude oil since 2022. Jaishankar reiterated the need to tackle this imbalance and called for greater facilitative measures, including progress in negotiations for a Free Trade Agreement (FTA) between India and the Eurasian Economic Union.“Our goal is to ensure trade is more balanced, which necessitates addressing current constraints and making trade processes smoother. While challenges remain, perceptible progress has been achieved in payments and logistics,” Jaishankar said.Expanding the Trade BasketManturov emphasized the rapid growth in bilateral trade, which has increased over five-fold in the last five years. With India now Russias second-largest trade partner, Manturov advocated for diversifying trade beyond crude oil. Russia has been importing agricultural products, industrial equipment, components, and pharmaceutical drugs from India.Manturov also highlighted the rising settlement of trade in local and alternative currencies, which now accounts for 90% of bilateral trade. Expanding direct flight routes between India and Russia was also suggested to boost economic and cultural ties. The two nations discussed collaboration across various sectors, including hydrocarbons, nuclear energy, pharmaceuticals, agriculture, and IT. Jaishankar and Manturov directed 14 working groups under IGC-TEC to finalize an economic cooperation program by 2030.The external affairs ministry confirmed that steps to enhance market access and expand relations between Indian and Russian banks will be prioritized to meet the trade target.
