India and Russia’s bilateral trade, currently valued at $66 billion, is on track to hit $100 billion by 2030, External Affairs Minister S. Jaishankar said during his address at the India-Russia Business Forum in Mumbai on Monday. The target, set during a leaders’ summit in July, is seen as achievable with concerted efforts from both nations.
Jaishankar acknowledged the imbalance in trade, stressing the need for quick action on non-tariff barriers and regulatory challenges to achieve a more balanced trade relationship. He emphasized the complementary nature of India and Russia’s economies, noting India’s strong growth prospects and Russia’s vast natural resources and technological expertise.
Pleased to deliver the keynote address at the India-Russia Business Forum held today.
Spoke about our economic complementarities and emerging opportunities in a multipolar world for greater 🇮🇳 🇷🇺 business cooperation.
Also highlighted our strong resolve to boost connectivity,… pic.twitter.com/4pbXXvBvNc
— Dr. S. Jaishankar (@DrSJaishankar) November 11, 2024
A key focus of Jaishankar’s speech was the importance of settling trade transactions in local currencies. In light of current global conditions, he highlighted the use of Special Rupee Vostro Accounts as an effective solution and stressed that national currency settlements would help improve the trade balance in the short term.
Jaishankar also discussed the need to strengthen logistical connections between the two countries, pointing to three critical infrastructure projects: the International North-South Transport Corridor (INSTC), the Chennai-Vladivostok Maritime Corridor, and the Northern Maritime Route. These connectivity initiatives are essential to unlocking the full potential of trade between India and Russia.
During the forum, Jaishankar noted that Russia has increasingly embraced India’s “Make In India” initiative, which he believes will further boost business and cooperation. He also emphasized that India, as a major player in global energy markets, could help Russia navigate volatility and uncertainty in sectors like oil, gas, and coal.
The two countries are scheduled to co-chair the Intergovernmental Commission on Trade and Economic Cooperation (IGC-TEC) meeting in New Delhi on November 12, focusing on expanding trade and scientific collaborations.