India, Russia exceed bilateral trade target of USD 30 billion

External Affairs Minister S. Jaishankar said on Monday that India and Russia have exceeded their bilateral trade target of USD 30 billion by 2025, and that trade is expected to increase further.

“We have crossed the bilateral trade target of USD 30 billion before the year 2025, which was the target year given to us by our leaders,” he said at the India-Russia Business Dialogue in Delhi. And, in fact, I understand that the trade for the period April 2022-February 2023 is around USD 45 billion, with the expectation that it will continue to grow.” According to Jaishankar, India and Russia must encourage business on both sides. He stated that they are determined to make India a “global manufacturing hub”.

“We need to motivate business on both sides. You can see that there are big changes going on, like Make in India. We are determined to make India a global manufacturing hub. I want to emphasise the opportunity for Make in India and Russia, as Russia is known for its technological strength,” Jaishankar said.

Speaking about the relations between India and Russia, Jaishankar said that the two nations have historic people-to-people ties. He also spoke about the possibility of greater business between the two nations in the tourism sector.

In his remarks at the India-Russia Business Dialogue, Jaishankar said, “Our two countries have historically also had a strong people-to-people connection. But I must point out that we actually get less than 1 percent of Russia’s outbound tourism. So, now that we are talking about exploring new areas and new opportunities, I would also flag whether more direct flights to more destinations will provide a possibility for greater business when it comes to tourism.”

EAM Jaishankar stressed that the ties between India and Russia have not changed. He said, “Our partnership today is a subject of attention and comment, not because it has changed but because it has not. Indeed, it has been among the steadiest of the major relationships in the world in the contemporary era. But that by itself is not enough.” Jaishankar said that Russia is looking more towards Asia, and for India, it means a broadening of engagement between the two nations, which was overly dependent on military, nuclear, and supply-space cooperation.

In his address at the India-Russia Business Dialogue, he said, “We are discussing the importance of connectivity, and the north-south and maritime corridors have been considered.” There is also discussion on payment issues like international trade settlement in the Indian rupee.

EAM Jaishankar said that there is concern regarding the trade imbalance. He highlighted the need to work with Russia urgently to address the trade imbalance. He said that addressing the issue means addressing the impediments, whether they are market access impediments, non-tariff barriers, or issues regarding payment and logistics.