India-Russia Trade Set to Surpass $100 Billion by 2030: A New Chapter in Bilateral Relations

At the India-Russia Business Forum, Indian External Affairs Minister, Dr. S. Jaishankar, projected bilateral trade to exceed $100 billion by 2030. Emphasizing economic partnerships, Jaishankar highlighted critical areas for growth, such as non-tariff barriers, currency settlement, and connectivity corridors, while addressing existing challenges in banking and logistics.

Speaking at the India-Russia Business Forum in Mumbai, Indian Minister of External Affairs Dr. S Jaishankar projected bilateral trade between the two nations to exceed USD 100 billion by 2030. Currently at USD 66 billion, this ambitious target remains achievable if certain critical areas are addressed, according to Jaishankar.

He highlighted ten pivotal development sectors that could fortify trade and investment ties. Jaishankar underscored the need to rectify the existing trade imbalance and called for the removal of non-tariff barriers and regulatory obstacles. The India-Eurasian Economic Union trade talks initiated earlier this year require urgent progress.

Further economic engagement aims at a Comprehensive Economic Partnership by 2030. Jaishankar emphasized expediting negotiations on a Bilateral Investment Treaty to enhance investor confidence. He pointed to mutual trade settlements in national currencies, aided by Special Rupee Vostro Accounts, as a significant step towards more balanced financial exchanges.

The May 2024 bilateral agreement on Authorized Economic Operators between Indian and Russian customs has already positively impacted trade facilitation. Jaishankar highlighted the continued importance of developing three major connectivity corridors: the International North-South Transport Corridor, the Chennai-Vladivostok Maritime Corridor, and the Northern Maritime Route.

Beyond trade, sectors such as education and film could enhance cultural and economic ties. Jaishankar celebrated Russia's growing appreciation of India's 'Make In India' initiative, considering it crucial for strengthening cooperation.

A Programme of Economic Cooperation till 2030 is in progress, aiming to establish a sustainable growth framework. Despite optimism, Jaishankar recognized challenges in sectors like banking, logistics, and market access, urging both governments to devise solutions to facilitate smoother bilateral trade.

(With inputs from agencies.)