Wed Nov 13 04:23:45 UTC 2024: ## India and Russia Aim for $100 Billion Trade Target, But Balance Remains a Challenge

**New Delhi, India** – India and Russia are on track to achieve a $100 billion trade target by 2030, but both sides acknowledge the need for more balanced trade relations, according to External Affairs Minister S Jaishankar. The two countries have seen significant progress in tackling challenges to trade, particularly related to payments and logistics, though further efforts are needed, Jaishankar stated at a meeting of the Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IGC-TEC) with Russia’s First Deputy Prime Minister Denis Manturov.

India currently holds a trade deficit of nearly $57 billion with Russia, primarily due to increased purchases of Russian crude since 2022. Addressing this imbalance is a priority for India, which believes the two economies are complementary and benefit from a strong relationship built over decades.

Jaishankar emphasized the need for a more balanced trade relationship, urging both sides to address existing constraints and facilitate trade further. He highlighted the importance of making progress on the India-Eurasian Economic Union free trade agreement.

Manturov acknowledged the need for trade diversification and agreed with Jaishankar on the importance of achieving a more balanced trade relationship. He noted that bilateral trade has increased more than fivefold in the last five years, making India Russia’s second largest trade partner.

Both sides have made significant progress in settling trade in local and alternative currencies, with the figure approaching 90%. Manturov stressed the importance of expanding cooperation between Indian and Russian banks and increasing direct flights between the two nations.

The IGC-TEC meeting also saw discussions on various areas of cooperation including trade, investment, hydrocarbons, nuclear energy, connectivity, agriculture, science and technology, IT, pharmaceuticals, healthcare, fertilizers, and education. The 14 working groups and six sub-groups under the IGC-TEC have been directed to finalize the programme for economic cooperation until 2030 and work towards achieving the $100 billion trade target.

Read More