The minister, however, called for addressing impediments of non-tariff barriers and regulatory bottlenecks to correct bilateral trade imbalance, currently heavily in favour of Moscow due to oil imports by New Delhi. Jaishankar was addressing the India-Russia Business Forum in Mumbai.
“Our (India-Russia) bilateral trade is today at $66 billion. This makes the goal of reaching $100 billion by 2030 more than realistic,” Jaishankar said in the presence of Russian First Deputy PM Denis Manturov. The two will meet on Tuesday for the joint commission meeting.
The $100 billion target was set by both countries during the annual leaders’ summit in July this year.
“The balance of trade, however, needs urgent redressal since it is so one-sided. It is imperative that non-tariff barriers and regulatory impediments are speedily addressed for this to happen,” Jaishankar pointed out.
He also said that both nations will have to find solutions that provide comfort to those involved in trade.“A partnership between an India that has an 8% growth rate for multiple decades ahead, and a Russia that is a key natural resources provider and a major technology leader, will serve both of them and the world well,” he said, suggesting an increase in Indian workforce in Russia through businesses.“The emergence of a global workplace is also today an increasing reality.
“Demographic unevenness has created demand and supply imbalances across the world. India and Russia can be partners in this regard as well. It would require a focused initiative that customises human resources for the Russian market. That is best done with the active participation of businesses,” he said.
Jaishankar also spoke about the importance and the need of settling bilateral trade with Russia in local currency and pushed for giving momentum to three connectivity initiatives – INSTC, Vladivostok-Chennai maritime corridor and the Northern Sea Route.
According to Jaishankar, signing of a bilateral agreement between the customs authorities of India and Russia in May 2024 on Authorised Economic Operators, “has had a big impact on smoothening the ease of doing trade.”
Manturov, on his part, drew a complementary between Russia’s technological sovereignty and the “Make in India” programme. Both these initiatives are aimed at accelerating the pace of production, developing innovations and removing infrastructure restrictions.
“In Russia, according to the results of eight months of this year, production volumes increased by almost 8%. Investments in fixed assets demonstrate high dynamics. In the manufacturing industries, they grew by 25% in the first half of the year,” Manturov said, adding, “That is, the authors of the sanctions did not achieve their goals. On the contrary, our country’s vector of movement towards sovereign development has only become clearer and firmer.”
Manturov outlined the key technological areas on which Russia is placing emphasis. “…we are talking about the development of all types of transport. Including the introduction of unmanned technologies and the transfer of vehicles to alternative fuels. Our special focus is a series of large-scale energy initiatives. Bearing in mind the development of the potential of the nuclear sector, the production of high-power turbines, equipment for solar and wind generation, and the improvement of LNG technologies.”
Among other priorities are the healthcare system with advanced medicines and medical products as well as strengthening Russia’s leading positions in the field of nuclear medicine, in the production of vaccines and the development of the cellular engineering segment; increasing agricultural productivity; technologies for the transition to a closed-cycle economy and space services. The visiting minister also focused on partnership between SMEs and proposal to create a “Single Export Channel” system.