Urgent redressal of India-Russia ‘one-sided’ balance of trade needed, says Jaishankar

During his address at the event, the External Affairs Minister made a mention of the business forum taking place “barely three months after the annual summit between the two leaders – Prime Minister Narendra Modi and Russian President Vladimir Putin – in Moscow, and their meeting last month in Kazan. “Those occasions have provided a strategic direction, whose economic dimension we seek to realise through this gathering,” he noted.

He said bilateral trade is at $66 billion as of now and this makes the goal of reaching $100 billion by 2030 more than realistic. The business community in both countries would note and appreciate the strong direction given by the governments to take forward the trade and investment ties, the Foreign Minister said. “It is natural that there would be concerns, such as banking and payment related issues, logistical challenges like shipping, insurance and reinsurance as well as market access,” Jaishankar said.

“Obviously, we have to find solutions that work to the comfort level of those actually involved in trade. I am confident that today’s gathering and the sessions that follow would facilitate an open exchange of views in this regard, with the expectation of coming up with mutually beneficial and workable answers,” he said.

Jaishankar said signing of a bilateral agreement between the customs authorities of the two countries in May 2024 on Authorized Economic Operators, has had a big impact on smoothening the ease of doing trade.Russia’s First Deputy Foreign Minister, Denis Manturov, attended the meeting, which explored business opportunities between India and Russia.

“The business circles of Russia and India are looking in the same direction today. Despite the difficult external conditions, they demonstrate a firm attitude towards pragmatism and readiness for cooperation,” Manturov said.

Talking about the focus areas of the economic partnership, he said, “Our special focus is a series of large-scale energy initiatives. Bearing in mind the development of the potential of the nuclear sector, the production of high-power turbines, equipment for solar and wind generation, and the improvement of LNG technologies.”

“The India-Eurasian Economic Union trade in goods negotiations commenced in March this year. We need to vigorously take it forward,” Jaishankar said. The first ever bilateral Investment Forum took place in Moscow in April 2024. “We also need to expedite negotiations on the Bilateral Investment Treaty,” he said.

“The programme for cooperation in regard to 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 said.

“The three connectivity initiatives between us – INSTC, Chennai-Vladivostok Corridor and the Northern Maritime Route – all need continued attention, if we are to realize full potential,” Jaishankar said,

He said a growing Russian appreciation of ‘Make In India’ as a programme to deepen business will certainly help to take forward our cooperation in many domains.

In energy domains such as oil, gas, coal or uranium, India will always be a major player in the international markets. “This applies as well to the demand for fertilizers of various kinds. Constructing a mutually beneficial arrangement will help us both address the volatility and the uncertainty of our times,” he said.

“The emergence of a global workplace is also today an increasing reality. Demographic unevenness has created demand and supply imbalances across the world. India and Russia can be partners in this regard as well,” he said. It would require a focused initiative that customizes human resources for the Russian market. That is best done with the active participation of businesses, he said.

The India-Russia Inter-Governmental Commission will be meeting in Delhi on Tuesday to take stock of our bilateral cooperation. Jaishankar said, “there is a larger international setting in which we should also place our cooperation.”

“The world is moving towards ever greater multi-polarity and devising appropriate methods of cooperation is essential if we are to keep up. Moreover, Russia has consciously focused more deeply on Asia since 2022. This has created many more avenues of cooperation. That we have a long history of strong convergence and deep friendship allows us to make the best of both factors,” he said,

That the two economies are so complementary is also a key consideration. “A partnership between an India that has an 8% 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,” Jaishankar said.

On Tuesday, New Delhi will also host the opening of the Russian Business Centre. “Its main objectives are to develop business ties between the two countries, promote export cooperation, and provide a platform for interaction between Russian and Indian business communities,” said a statement by the Russian Embassy in New Delhi on Monday.

The centre will include a coworking space for events, regional business missions, forums, seminars, and conferences, while the centre specialists will provide analytical support and advice on various issues, it said.