Bridging the Trade Gap: Jaishankar Calls for Action

External Affairs Minister S Jaishankar highlights the need to address India's widening trade deficit with Russia. His remarks emphasize direct currency trade settlements and the removal of regulatory barriers to enhance bilateral trade and potentially reach a USD 100 billion target.

External Affairs Minister S Jaishankar on Monday emphasized the urgent necessity for India to address its growing trade deficit with Russia. Speaking at the India-Russia Business Forum, he urged swift action on non-tariff barriers and regulatory hurdles that hinder balanced trade.

India's imports from Russia have surged to USD 27.35 billion from April to August, notably due to crude oil purchases, while exports linger at USD 2.24 billion, resulting in a USD 25.11 billion deficit. Jaishankar advocates for mutual trade settlements in national currencies, citing Special Rupee Vostro Accounts as an effective current mechanism.

He further highlighted the importance of enhancing connectivity through initiatives like the International North-South Transport Corridor. Addressing banking, logistical, and market access challenges, Jaishankar emphasized constructing mutually beneficial trade arrangements. Russian Deputy PM Denis Manturov and industry leaders were present, highlighting the potential for strengthened economic ties.

(With inputs from agencies.)