External Affairs Minister S Jaishankar, during the 26th Session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) held in Moscow on August 20, 2025, emphasised several key initiatives aimed at strengthening the economic ties between India and Russia.

His focus was on removing tariff and non-tariff trade barriers, addressing logistical bottlenecks, and enhancing connectivity through major transport corridors, including the International North-South Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Corridor.

Jaishankar highlighted the need for streamlining payment mechanisms and finalising a long-term Programme of Economic Cooperation until 2030.

A significant point in his address was the call for an early conclusion of the India-Eurasian Economic Union Free Trade Agreement (FTA), whose terms of reference had been finalised during the session, which he described as a crucial step towards expanding overland trade with Russia, China, India, and Central Asia.

He underscored that these measures would not only address the existing trade imbalance but also help achieve the revised target of USD 100 billion bilateral trade by 2030.

Jaishankar pointed out the remarkable growth in bilateral trade over the last four years, which had surged more than five-fold—from USD 13 billion in 2021 to a record USD 68 billion in 2024-25. 

However, this growth was accompanied by a substantial trade imbalance that had expanded approximately nine times, from USD 6.6 billion to USD 58.9 billion, mainly due to India's rising imports of Russian hydrocarbons. He called for urgent measures to bridge this gap by boosting Indian exports and diversifying the trade basket beyond energy and raw materials.

He also urged Working Groups and Sub-Groups within IRIGC-TEC to adopt a creative and innovative approach, focusing on smoother settlements, better logistics, joint ventures, skilling, and mobility. To ensure effective progress, Jaishankar recommended setting specific quantifiable targets and timelines, encouraging each group to pursue concrete commitments.

Further suggestions included having at least two inter-sessional meetings including a midterm virtual review to ensure continuous follow-ups and adjustments. To enhance policy-business cooperation, he proposed establishing a coordination mechanism between the Business Forum and Working Groups to facilitate bi-directional information flow, making IRIGC-TEC more relevant and result-oriented.

Jaishankar stressed that IRIGC-TEC plays a crucial role in preparing for the upcoming Annual India-Russia Summit and that more dynamic economic cooperation between the two countries must continue to build on their long-standing strategic partnership amid evolving global challenges.

Jaishankar's address reflected a strategic drive not just to increase trade volume but also to make the economic partnership more balanced, diversified, and sustainable by focusing on infrastructure connectivity, removal of trade barriers, cooperation mechanisms, and long-term planning to fully realise the growing potential of India-Russia economic ties.

Based On ANI Report