India and Russia have recorded a remarkable surge in bilateral trade in recent years, with External Affairs Minister S Jaishankar highlighting that trade in goods between the two countries has expanded more than fivefold over the past four years.

Speaking at the 26th Session of the India-Russia Inter-Governmental Commission for Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) in Moscow on August 20, 2025, Jaishankar noted that bilateral trade has risen from USD 13 billion in 2021 to USD 68 billion in the financial year 2024-25.

This unprecedented growth reflects the strengthening of India-Russia economic ties, especially in critical areas such as energy, defence, and agriculture. However, the External Affairs Minister stressed that this expansion has been accompanied by a significant imbalance.

The trade deficit, which stood at USD 6.6 billion in 2021, has ballooned to USD 58.9 billion in 2024-25, a more than nine-fold increase, leaving India heavily dependent on imports from Russia. Jaishankar underscored the urgency of rectifying this trade asymmetry to ensure sustainability and fairness in the long-term economic partnership.

The meeting in Moscow came just 10 months after the last IRIGC-TEC session in New Delhi in November 2024 — one of the shortest intervals between two such meetings in the history of the mechanism.

This frequency, Jaishankar observed, reflects the intensified dialogue and robust cooperation that has characterised the recent trajectory of India-Russia relations. He further pointed out that the discussions were taking place against the backdrop of a “complex geopolitical situation,” alluding implicitly to ongoing global contests such as the Ukraine war, Western sanctions, and disruptions in global supply chains.

He emphasised that the Special and Privileged Strategic Partnership between India and Russia has remained resilient, with both sides demonstrating a shared commitment to navigating these challenges.

The External Affairs Minister also recalled that Indian Prime Minister Narendra Modi and Russian President Vladimir Putin held two high-level in-person meetings in 2024, a testament to the steady and proactive engagement between the top leadership of both countries.

During his three-day visit, Jaishankar is not only co-chairing the IRIGC-TEC session but is also scheduled to address the India-Russia Business Forum in Moscow, where he is expected to engage directly with leading industrialists and entrepreneurs from both nations.

His program also includes a meeting with Russian Foreign Minister Sergey Lavrov, during which the two sides will review the full spectrum of bilateral relations and exchange perspectives on pressing regional and global issues.

This comprehensive engagement reflects New Delhi’s continued strategic balancing: while India has expanded its partnerships with the West, particularly with the United States and Europe, it has simultaneously preserved and deepened its time-tested bonds with Moscow in critical spheres such as defence cooperation, nuclear energy, hydrocarbons, and emerging technologies.

The latest round of the IRIGC-TEC discussions exemplifies both the opportunities and challenges in India-Russia economic relations.

While the surge in trade volumes showcases the vitality of the partnership, the disproportionate reliance on Russian exports, largely composed of oil, coal, fertilisers, and defence equipment, underlines the urgency for diversifying and rebalancing this trade.

India seeks greater market access in Russia for its pharmaceuticals, textiles, engineering goods, agricultural products, and IT services to help narrow the deficit.

Going forward, the policy framework and initiatives finalised during Jaishankar’s visit are likely to play a pivotal role in shaping the trajectory of India-Russia economic cooperation as both countries prepare for their forthcoming Annual Summit later this year.

Based On ANI Report