India-Russia trade to reach USD 100 billion by 2030, says EAM Jaishankar

India’s External Affairs Minister Dr. S. Jaishankar on Monday projected that bilateral trade between India and Russia would surpass USD 100 billion by 2030, calling it a realistic and achievable goal.

Speaking at the India-Russia Business Forum in Mumbai, Jaishankar said: “Our bilateral trade is today at USD 66 billion. This makes the goal of reaching USD 100 billion by 2030 more than realistic. The balance of trade however needs urgent redressal since it is so one-sided. It is imperative that non-tariff barriers and regulatory impediments are speedily addressed for this to happen. The India-Eurasian Economic Union trade-in goods negotiations commenced in March this year. We need to vigorously take it forward.”

Jaishankar outlined several key areas that will drive future economic cooperation, including the establishment of a Comprehensive Economic Partnership by 2030. He underscored the need to expedite negotiations on a Bilateral Investment Treaty to boost investor confidence, with a focus on mutual settlements in national currencies. Special Rupee Vostro Accounts, already set up, are seen as a significant step in facilitating currency settlements and fostering a more balanced trade relationship.

The May 2024 bilateral agreement on Authorized Economic Operators between Indian and Russian customs authorities has made a positive impact on trade facilitation and ease of business, according to Jaishankar.

He emphasized the continued development of the three major connectivity corridors — the International North-South Transport Corridor (INSTC), the Chennai-Vladivostok Maritime Corridor, and the Northern Maritime Route — which are vital for enhancing logistical networks between the two nations.

Beyond trade, he also emphasized the importance of collaborative efforts in sectors such as education and film, which he sees as instrumental in forging a broader cultural and economic bond between India and Russia.

He said, “A growing Russian appreciation of Make In India as a program to deepening business will certainly help take forward our cooperation in many many domains. Importance of non-economic domains, such as education and film as contributions to a larger societal but also Economic connect between us.”

He revealed that work on a Programme of Economic Cooperation till 2030 is already underway, tasked with creating a sustainable framework for growth.

Jaishankar acknowledged some challenges, including banking and payment-related issues, logistical hurdles in shipping, insurance and reinsurance, and market access.

He urged both governments to focus on creating solutions that would address these concerns to meet the comfort levels of businesses engaged in bilateral trade. (ANI)