Boosting India-Russia Trade: Strategies and Challenges

The Global Trade Research Initiative believes India can boost its trade with Russia through steps such as increasing exports, using local currencies, and formalizing a free trade agreement with the Eurasian Economic Union. Despite a significant trade imbalance due to increased crude oil imports from Russia, strategic measures could help India achieve its $100 billion trade target by 2030.

The Global Trade Research Initiative (GTRI) has outlined several strategies to enhance trade between India and Russia. These include ramping up exports, facilitating local currency trading, and formalizing a free trade agreement with the Eurasian Economic Union.

The think tank stressed that India shouldn't be concerned about the trade deficit with Russia, as it benefits from lower-priced crude oil, thus reducing its overall import bill. Since the Ukraine war started in February 2022 and ensuing US sanctions on Russia, trade relations between India and Russia have experienced a significant shift.

There has been a tremendous increase in imports from Russia, mainly crude oil, which has resulted in a significant trade imbalance. Indian exports grew by 59% over the last few years while imports surged by 8,300%, leading to a $57.2 billion trade deficit. However, with a clear product-level strategy, India has the potential to export more to Russia and achieve its ambitious bilateral trade target of $100 billion by 2030.

(With inputs from agencies.)