MOSCOW — External Affairs Minister Dr. S. Jaishankar, on Monday, August 24, urged decisive and practical steps to address commercial challenges between India and Russia. He called for the prompt elimination of non-tariff barriers, the continued reinforcement of national currency payment mechanisms, and the accelerated finalization of a Free Trade Agreement (FTA) with the Eurasian Economic Union. These steps, he noted, are vital to steering bilateral trade toward the ambitious milestone of USD 100 billion by the year 2030.

Minister Details Growing Trade Deficit; Outlines Corrective Steps

Speaking at the 27th session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) in Moscow alongside Russian First Deputy Prime Minister Denis Manturov, Dr. Jaishankar underscored that addressing the uneven balance of trade between the two strategic partners has become “one of our foremost priorities”.

Reviewing the trade figures, Dr. Jaishankar pointed out that two-way merchandise trade has grown more than four times, climbing from around USD 13 billion in 2021-22 to nearly USD 60 billion in 2023-24. However, this steep upward trajectory has created a heavily skewed trade balance, with the overall trade gap surging from USD 6.6 billion to over USD 50 billion.

Detailing the dynamics of this rapid expansion, the External Affairs Minister stated: “This demonstrates the immense potential of our partnership. And the rapid expansion of trade has, however, been accompanied by a significant widening of the trade imbalance, which has also increased from 6.6 billion to over US dollars 50 billion”.

Highlighting the urgent need to rebalance commerce, he emphasized: “Addressing this imbalance is today one of our foremost priorities. Excellency, colleagues, progress on market access, removal of tariff and non-tariff barriers, strengthening payment mechanisms and stronger business-to-business engagement will be critical for addressing this imbalance and achieving our shared objective of US dollars 100 billion in bilateral trade by 2030”.

Outlining how institutional bodies should operate, he stressed that performance must be judged by tangible results on the ground: “Going forward, the effectiveness of our efforts should increasingly be measured by the outcomes we deliver. Each working group must prioritise deliverables to be achieved before the next session and actively engage in problem-solving”.

Turning to commercial outreach, Dr. Jaishankar called for meaningful collaboration with the private sector, emphasizing: “Governments can create enabling frameworks, but it is our businesses that trade, invest, innovate and create jobs. Our institutional mechanisms should therefore remain closely aligned with the priorities of industry. Regular interaction with businesses and industry associations will help us to identify practical bottlenecks, improve policy responsiveness and ensure that discussions remain relevant, action-oriented and commercially meaningful”.

Innoprom India Forum

Highlighting concrete steps to bridge business communities, Dr. Jaishankar described the upcoming Innoprom India event as a major benchmark. He remarked that “the holding of Innoprom in India in the coming weeks is a very good signal in that regard”, noting its role as an established international platform designed to drive industrial collaboration and commercial exchange between Indian and Russian enterprises.

Discovering Fresh Economic Avenues

Emphasizing the importance of staying responsive to global shifts, the Minister noted that both sides must continually assess priorities and unlock new avenues of economic collaboration. He observed: “The complicated international scenario will constantly throw up fresh ideas because we are all focused on de-risking and diversifying. Economic demands and technology requirements will add to this mix”.

Reflecting on the fundamental strength of the bilateral relationship, Dr. Jaishankar reiterated the “resilience and adaptability” that characterizes the Special and Privileged Strategic Partnership during a period of shifting global geopolitics. He concluded by reaffirming New Delhi’s firm resolve to make complete use of the IRIGC framework to achieve its economic targets, noting that the relationship continues to expand and deepen, driven by shared mutual confidence and long-term strategic interests.