India optimistic about surpassing USD 100 billion trade target with Russia before 2030: EAM

File Pic

India is confident of reaching USD 100 billion in annual bilateral trade with Russia well ahead of the 2030 target, External Affairs Minister S. Jaishankar said on Tuesday. He added that the growing relationship between the two countries has far-reaching global significance.

Speaking at the 25th India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), Jaishankar acknowledged the challenges faced in the trade relationship, particularly with payments and logistics. However, he noted substantial progress in addressing these issues, although further work remains to be done.

Jaishankar emphasized the importance of creating a "more balanced" trade relationship, pointing out that this would require tackling existing constraints and facilitating greater trade efforts. He said that the relationship between the two nations has greater resonance in an increasingly multipolar world.

The External Affairs Minister noted that India's economic ties with Russia are strengthening, with bilateral trade estimated at USD 66 billion. He expressed confidence that India would meet its goal of USD 100 billion in trade with Russia well before the 2030 target. According to Jaishankar, this goal could be achieved by easing trade barriers and making negotiations on the India-Eurasian Economic Union (Eurasian Economic Union or EEU) Free Trade Agreement (FTA) a priority.

Jaishankar also highlighted Russia's growing interest in India's "Make in India" programme, which encourages joint ventures and other forms of economic collaboration.

The minister spoke about the mutual benefits of the partnership, with India increasingly relying on Russia for vital supplies such as fertilisers, crude oil, coal, and uranium. At the same time, India's pharmaceutical industry has become a reliable and affordable source of products for Russia.

Looking ahead, Jaishankar discussed the importance of expanding connectivity between the two countries. He mentioned ongoing projects like the International North-South Transport Corridor, the Chennai-Vladivostok Corridor, and the Northern Sea Route, all of which are critical to enhancing trade and cooperation.

Jaishankar also mentioned that both countries would explore talent mobility and its adaptation to the Russian market as part of future collaborations.

Meanwhile, the Russian delegation, led by First Deputy Prime Minister Denis Manturov, also acknowledged the rapid growth in trade ties between the two nations. Manturov noted that over the past five years, trade turnover between India and Russia has grown more than fivefold. He confirmed Russia's commitment to finalizing a free trade agreement between the EEU and India, which would benefit both sides' business communities.

According to Manturov, India is now the second-largest economic partner of Russia, further cementing the significance of their growing bilateral relationship.

(With inputs from PTI)