The trade turnover between India and Russia has surged an extraordinary 700% over the past five years, according to Russia's Deputy Prime Minister Denis Manturov after his meeting with India's External Affairs Minister S. Jaishankar.

This dramatic increase has placed India among the top three trading partners of Russia, marking a significant deepening of bilateral commercial ties.

External Affairs Minister Jaishankar, during his visit to Moscow to co-chair the 26th session of the India-Russia Inter-Governmental Commission for Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC), highlighted that bilateral trade in goods has more than quintupled, rising from USD 13 billion in 2021 to USD 68 billion in the fiscal year 2024-25.

Despite this remarkable growth, Jaishankar stressed an urgent need to address the widening trade imbalance between the two countries. India’s trade deficit with Russia has ballooned from USD 6.6 billion in 2021 to nearly USD 59 billion in 2024-25, mainly driven by increased imports of Russian hydrocarbons.

Deputy Prime Minister Manturov pointed out that the expansion in trade is not limited to traditional energy commodities but also includes mineral fertilisers, metallurgy, timber products, diamonds, power engineering equipment, and foods from Russia, while India exports agricultural products, medicines, pharmaceuticals, light industry products, industrial raw materials, equipment, and components to Russia.

Both countries are also exploring more seamless mutual settlements, including expanding the use of national currencies like the rupee and rouble to reduce dependency on third-party currencies.

The discussions also focused on removing tariff and non-tariff barriers, resolving logistics bottlenecks, and promoting connectivity through strategic trade corridors such as the International North-South Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok maritime corridor.

Russia has also expressed interest in expanding liquefied natural gas (LNG) supplies to India and collaborating further in nuclear energy, building on existing projects like the Kudankulam Nuclear Power Plant.

Additionally, both leaders emphasised the importance of concluding a Free Trade Agreement (FTA) between India and the Eurasian Economic Union, comprising Russia and its neighbouring countries, to solidify trade relations and unlock new economic cooperation potentials.

EAM Jaishankar highlighted that the IRIGC-TEC serves as a vital mechanism in preparation for the upcoming Annual Summit between the countries, expected by the end of 2025, aiming to further reinforce the enduring strategic partnership through deeper and more sustainable economic cooperation.

He urged businesses on both sides to intensify trade, explore investments, form joint ventures, and open new frontiers for economic partnership amid a complex geopolitical environment.

The India-Russia trade relationship has witnessed unprecedented growth over the last five years, reaching a milestone turnover of USD 68 billion with a 700% surge, addressing the significant trade imbalance and further enhancing market access remain critical priorities for both nations to ensure more balanced and resilient bilateral economic ties.

Based On ANI Report