External Affairs Minister S Jaishankar meets Russia's First Deputy PM Denis Manturov, in Moscow

India’s external economic strategy is undergoing crucial adjustments in light of recent developments, most notably the United States’ imposition of a steep 50% ad valorem tariff on goods imported from India, set to take effect on August 27,

2025. This escalation in tariffs intensifies the need for India to pivot towards alternative trading partners and reinforce economic ties beyond its traditional allies.

Against this backdrop, External Affairs Minister S Jaishankar has issued a strong call during his visit to Moscow for Russian businesses to step up their engagement with India. Jaishankar underscored India’s robust growth trajectory, citing a GDP exceeding $4 trillion and an annual growth rate of 7% expected for the foreseeable future.

He outlined the imperative for India to secure dependable resources to sustain this expansion, including assured supplies of essential products such as fertilisers, chemicals, and machinery.

India's rapidly evolving infrastructure, spurred by modernisation and urbanisation, creates vast openings for foreign enterprises—particularly those with a proven track record in Russia—to participate in major projects and tap into the growing demand generated by shifts in consumption and lifestyle.

Specifically, Jaishankar pointed to India's ‘Make in India’ initiative and other market-friendly reforms as windows of opportunity for Russian firms. These policies not only facilitate greater foreign participation but also aim to enhance India’s self-sufficiency and diversify its industrial base.

In urging Russian companies to “engage more intensively” with Indian counterparts, Jaishankar emphasised that existing levels of trade, despite recent improvements, remain constrained both in terms of diversity and overall volume.

The significant trade deficit, which has grown along with bilateral trade, underscores the urgent need to diversify and balance the trade basket.

Jaishankar called for “strenuous efforts” from both sides to expand and re-balance economic exchanges, describing these efforts as essential not just to reaching higher targets, but also to sustaining current levels of cooperation.

Further remarks by Jaishankar highlighted the potential for deeper collaboration beyond traditional trade channels. He voiced willingness on India's part to explore increased investment flows, joint ventures, and other modes of partnership.

He indicated that government efforts should focus on providing guidance and creating favourable conditions for business activities, with the ultimate goal of ensuring that the enduring strategic partnership between India and Russia incorporates a strong and sustainable economic component.

Jaishankar’s positive push thus aims to catalyse the private sector, urging businesses to step forward and ensure that commercial agendas are closely synchronised with governmental objectives

A major highlight of Jaishankar’s visit was the signing of the Terms of Reference for a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU), a bloc led by Russia.

Jaishankar expressed confidence that when concluded, this FTA would substantially impact the bilateral economic relationship, facilitating smoother and more diversified trade flows. Beyond goods and investments, the discussions also focused on joint ventures in sectors with established demand, significant new investment proposals, advances in skilling and labour mobility, and initiatives to enhance connectivity between the countries through multiple channels.

Jaishankar concluded by stressing that actual progress depends ultimately on confident private sector participation and close collaboration between government and businesses to translate policy discussions into tangible outcomes.

Amid escalating trade tensions with the US, including the imposition of new tariffs, Jaishankar’s outreach to Russian companies is both timely and strategic.

It reflects India’s drive to diversify its international economic relationships, reduce vulnerability to shifting trade policies, and build a more balanced and resilient partnership with Russia through greater commercial engagement, investment, and collaboration across sectors.

Based On ANI Report