Tue Nov 12 15:50:00 UTC 2024: ## India Urges Russia to Address Widening Trade Deficit
**New Delhi:** India has called for urgent action to address the widening trade deficit with Russia, which has reached a staggering USD 25.11 billion in the first five months of the current fiscal year.
Addressing the India-Russia Business Forum on Monday, External Affairs Minister S Jaishankar highlighted the imbalance, pointing out that while India’s exports to Russia were just USD 2.24 billion between April and August, imports surged to USD 27.35 billion during the same period. This disparity is primarily attributed to India’s reliance on discounted Russian crude oil following the invasion of Ukraine.
“The balance of trade needs urgent redressal since it is so one-sided,” Jaishankar stated. He called for the swift removal of non-tariff barriers and regulatory impediments to improve the trade balance.
Despite the deficit, Jaishankar expressed optimism about the potential for bilateral trade, emphasizing the goal of achieving USD 100 billion in trade volume. He also advocated for mutual settlement of trade in national currencies, particularly in light of current geopolitical circumstances, and highlighted the effectiveness of the special Rupee Vostro Accounts.
The minister emphasized the strategic partnership between India and Russia, citing the recent meetings between Prime Ministers Narendra Modi and President Vladimir Putin. He highlighted the importance of connectivity initiatives like the International North-South Transport Corridor, Chennai-Vladivostok Corridor, and the Northern Maritime Route.
Addressing concerns about banking, payment, and logistical challenges, Jaishankar acknowledged the need for solutions that ensure comfort for businesses engaged in bilateral trade. He also stressed India’s continued dependence on Russian energy resources, particularly oil, gas, coal, and uranium, and emphasized the need for a mutually beneficial arrangement to address market volatility.
The minister further proposed collaboration on addressing demographic imbalances and leveraging the global workplace model. He also stressed the importance of non-economic areas like education and film for fostering deeper societal and economic connections between the two countries.
The India-Russia Business Forum, supported by the Federation of Indian Chambers of Commerce & Industry (FICCI), saw participation from prominent business leaders, including Anish Shah of Mahindra.
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