Indian Ambassador to Russia Vinay Kumar said that trade between India and Russia has tripled and trade balance is a top priority.
RT quoted Ambassador Kumar as saying that India and Russia should take advantage of new opportunities in each other's markets and promote sustainable bilateral trade.
In the next 5 years, we will expand areas of cooperation in trade and investment. Our two countries have major similarities - the population advantage of India, the Indian market, Russia's technology and expertise in processing and manufacturing - we need to bring each other closer and increase India's exports to Russia" - Mr. Kumar said on the sidelines of the St. Petersburg International Economic Forum. Petersburg (SPIEF).
The Ambassador said that bilateral trade has increased nearly threefold in the past two years, with India increasing imports of energy, fertilizers and coal from Russia. Trade between the two countries reached 65.7 billion USD in the fiscal year ended in March 2024, up 33% over the same period.
However, New Delhi's trade deficit with Moscow increased by 33% to more than 57 billion USD in the 2023-2024 financial year, according to data from the Indian Ministry of Commerce. The trade deficit has increased 8 times since 2021-22.
Mr. Kumar said that trade balance is a top priority of the two countries to maintain growth momentum.
We need to address market access issues and explore new opportunities for Indian goods in the Russian market, including agricultural products, processed foods, auto parts and other items.
India is also making efforts to attract more investment from Russia in the manufacturing sector. A series of Russian companies have established facilities in the South Asian country, aiming to target both a dynamic domestic market and third countries.
The Indian government has launched a program to encourage production linkages, in which domestic and foreign companies receive financial rewards for manufacturing in India in 14 key areas, including steel, medical equipment, pharmaceuticals, food processing, textiles and drones.
The national monetary payment mechanism has been improved and Russian banks, including Sber, VTB and other banks, are rapidly expanding their presence in the South Asian country.
Logistics has also become faster and cheaper as Russian transport companies have established new multi-modal services between the two countries' main ports, reducing transportation time from more than 45 days to 20 days.
Speaking at SPIEF, Russian Deputy Minister for Economic Development Vladimir Ilyichev noted that further bilateral trade balance will be possible after India and the ASEAN Economic Union (including Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia) sign a free trade agreement. He said the negotiations had been launched many years ago and were in an active phase.
India and Russia are two members of the 10-member BRICS group. BRICS is continuing to aim to expand the bloc, admit new countries and the bloc is also considering the establishment of a BRICS common currency to counter the USD.
