External Affairs Minister S Jaishankar has called for increased corporate engagement between Russia and India, warning that growing tariff and non-tariff barriers threaten to stall the momentum of bilateral trade.
Speaking in Moscow at the 26th session of the India-Russia Inter-Government Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), which he co-chaired with Russia’s First Deputy Prime Minister Denis Manturov, Jaishankar emphasized the urgent need to finalise a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU).
Jaishankar outlined the key issues addressed during the commission's meeting, including "the tariff and non-tariff barriers, removing bottlenecks in logistics, promoting connectivity through the International North-South Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Corridor, and ensuring smooth payment mechanisms." He confirmed that the commission had successfully finalized the terms of reference for the FTA, which he described as a crucial step forward.
Trade Surges, but Imbalance Widens
Bilateral trade between India and Russia has seen a dramatic increase, surging more than five-fold in the past four years from $13 billion in 2021 to $68 billion in 2024-25. This significant growth has been driven primarily by Indian imports of Russian hydrocarbons. The Russian Embassy in New Delhi estimated the overall growth at 700 pc over the last five years.
However, Jaishankar highlighted a major concern: the widening trade imbalance. India's trade deficit with Russia has ballooned from just $6.6 billion in 2021 to nearly $59 billion. The minister stated, "So, we need to address that urgently," and urged Moscow to open its market to a wider range of Indian exports.
Call for Innovation in Cooperation
During the India-Russia Business Forum later the same day, Jaishankar encouraged Russian companies to invest in India and explore new joint ventures. He posted on X after the meeting, "An enduring strategic partnership must have a strong and sustainable economic component. In this context, I called on our businesses to do more trade, contemplate more investments, joint ventures, and open new frontiers of economic cooperation."
The minister urged both sides to "move beyond the beaten track" by diversifying their trade basket, setting quantifiable targets and timelines, and creating stronger links between the business forum and IRIGC working groups. He challenged delegates by stating, "Doing more and doing differently should be our mantras. Each sub-group should commit to concrete outcomes before the next commission meeting."
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Geopolitical Context and US Tariffs
The Moscow discussions took place amidst new tensions in India-US relations, following President Donald Trump’s decision to double tariffs on Indian goods to 50 pc, which included a 25 pc penalty for New Delhi's continued purchase of Russian crude oil. The White House stated this move was intended to pressure Moscow by limiting its trade partners.
Without directly referencing Washington's actions, Jaishankar acknowledged that the talks were occurring "in the backdrop of a complex geopolitical situation." Despite this, he stressed that New Delhi and Moscow remain "closely and regularly engaged" at the leadership level.
Jaishankar is on a three-day visit to Russia aimed at solidifying the strategic partnership that both nations continue to describe as "time-tested."
Also Read: Urgent need to reduce India–Russia trade imbalance: Jaishankar
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