- Trade between India and Russia rose fivefold to $68bn from 2021 to 2024-25
- India's trade deficit with Russia grew nine times to $58.9bn in the same period
- India aims to reach a $100bn trade target with Russia by 2030
External Affairs Minister S Jaishankar highlighted the trade deficit of $58.9 billion between Russia and India, despite more than a fivefold rise in bilateral goods trade over the last four years. The imbalance has resulted from New Delhi's oil purchase from Russia.
During his Moscow visit, Mr Jaishankar suggested ways to expand the trade relationship between the two countries to tackle the trade deficit. He said that the imbalance "needed to be addressed urgently."
"Over the last four years, our bilateral trade in goods has increased, as you have noted, more than five-fold from $3 billion in 2021 to $68 billion in 2024-25 and it continues to grow. However, a major trade imbalance has accompanied the growth; it has increased from $6.6 billion to $58.9 billion which is about nine times. So we need to address that urgently," Mr Jaishankar stated while co-chairing the India-Russia Inter-Governmental Commission for Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) with Russia's first deputy PM Denis Manturov.
The Foreign Minister suggested that removal of tariff and non-tariff barriers, fixing logistical challenges and boosting regional connectivity through routes such as the International North-South Transport Corridor (INSTC), the Northern Sea Route, and the Chennai-Vladivostok maritime corridor, will help address the imbalance and grow trade.
He added that this will also aid in the timely achievement of the revised trade target of $100 billion by 2030. He also urged for an early conclusion of the India-Eurasian Economic Union FTA, the terms of reference of which were finalised on Wednesday.
Mr Jaishankar underlined how despite global challenges, both the countries have remained in close, regular contact, meeting "in person" twice last year.
"They provide us wise and practical guidance to our Special and Privileged Strategic Partnership. They had two 'in person' meetings last year and are personally committed to further advancing our strategic partnership," he added.
Mr Jaishankar is on a three-day visit to Russia, in the backdrop of US President Donald Trump's tariff attacks on India.
The United States has slapped 25 per cent reciprocal tariffs on India, along with an additional 25 per cent levy on its purchases of Russian oil, resulting in a total of 50 per cent duties. Trump had been putting pressure on India to stop buying oil from Russia, claiming that it fuelled the Ukraine war.
