India-Russia Trade Talks Pave Way for $100 Billion Goal by 2030

Commerce Secretary Rajesh Agrawal and Russian Deputy Minister Vladimir Ilyichev met to discuss boosting bilateral trade, setting sights on $100 billion by 2030. They signed a protocol for cooperation across various sectors, emphasizing market access and supply chain resilience, reaffirming their strategic partnership.

Commerce Secretary Rajesh Agrawal and Vladimir Ilyichev, the Deputy Minister of Economic Development of Russia, held the 26th Meeting of the India-Russia Working Group on Trade and Economic Cooperation. This meeting was part of the Inter-Governmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC), and aimed at reviewing the bilateral trade relationship between the two countries. According to a release from the Ministry of Commerce and Industry, the trade between India and Russia has surpassed the previous benchmarks set by the leaders in 2014, achieving more than double the US$25 billion goal. Both parties aim to reach a $100 billion trade volume by 2030 and signed a comprehensive protocol for advancing cooperative efforts across multiple sectors.

The Commerce Secretary emphasized the possibilities for expanding and deepening trade relations by proposing confidence-building measures to enhance market access. Key issues discussed included the expedited listing of Indian establishments and establishing systems-based approaches with the Federal Service for Veterinary and Phytosanitary Supervision (FSVPS), particularly in agriculture sectors such as marine products. Further discussions highlighted a time-bound pathway for the pharmaceutical sector on registration and regulatory procedures. Both sides identified opportunities in expanding trade across sectors like engineering, chemicals, electronics, agriculture, leather, and textiles, emphasizing Indian strengths in engineering goods, smartphones, and more which could support Russia's trade diversification efforts.

In the services sector, India advocated for increased procurement of its IT-BPM, healthcare, education, and creative services by Russian firms. They also highlighted the importance of predictable mobility for Indian professionals to address labor shortages in Russia. India's Global Capability Centre (GCC) ecosystem, which hosts a significant portion of global GCCs, was presented as an ideal platform for Russian companies to enhance their operations, ensure business continuity, and strengthen resilience in supply chains. These discussions showcased the firm commitment to bolstering mutual trade relations and economic ties between the two nations.

The Indian side acknowledged Russia's interest in establishing a bilateral investment treaty, and both sides agreed to explore effective payment solutions to cater to business needs, especially for small and medium enterprises. The session concluded with a reaffirmation of the special strategic partnership between India and Russia, focusing on resilient supply chains and a balanced economic partnership aligned with the goal of achieving US$100 billion in trade by 2030. This enduring bilateral relationship continues to adapt and thrive in response to global challenges.

(With inputs from agencies.)