External Affairs Minister S Jaishankar held a “wide-ranging conversation” with Russian leader Vladimir Putin on Monday — outlining plans for $100 billion in trade by 2030. Moscow also assured the other country of an uninterrupted supply of energy and fertilisers amid disruption caused by the West Asia crisis.
“I am pleased to note that our trade has increased this year. It declined slightly last year, but it is growing this year …We are doing everything we can to fully meet the needs of Indian farmers and the agricultural sector, increasing these supplies and standing ready to continue doing so,” the state-run TASS news agency quoted Putin as saying.
Jaishankar also highlighted the widening trade imbalance between the two countries in his opening remarks — noting that the figure had moved from $6.6 billion to over $50 billion.
‘$100 billion trade by 2030’
The Indian lawmaker noted that bilateral trade had expanded more than 4x over the past few years — rising from $13 billion in 2021-22 to nearly $60 billion in 2023-24. But the surge has also triggered a massive trade gap between the two countries. A key driver of this imbalance is India’s large-scale purchases of discounted Russian crude oil and fertilisers.
“Addressing this imbalance is today one of our foremost priorities. Excellency, colleagues, progress on market access, removal of tariff and non-tariff barriers, strengthening payment mechanisms and stronger business-to-business engagement will be critical for addressing this imbalance and achieving our shared objective of US dollars 100 billion in bilateral trade by 2030,” PTI quoted Jaishankar as saying.
India-Russia FTA in focus
Both sides are now actively negotiating a Free Trade Agreement through the Eurasian Economic Union. Russian First Deputy Prime Minister Denis Manturov added during an address on Monday that the country was looking for structural diversification while expanding trade volumes.
“Our task is not only to increase trade volumes, but also to diversify their structure. Alongside Russia’s traditional supplies of fuel and mineral fertilisers, trade is expanding in agricultural and food products, machinery, metals and forestry products. At the same time, imports from India include pharmaceuticals, agricultural products, industrial raw materials, equipment and components, as well as light-industry goods,” the Russian Foreign Ministry quoted him as saying.
The exchange came as Manturov and Jaishankar co-chairing the 27th session of the Russian-Indian Intergovernmental Commission in Moscow. The official also called for increased business participation in trade fairs to support this expansion. Manturov flagged the international industrial exhibition INNOPROM India in New Delhi as a key platform for discovering new partners and joint projects. The event will take place ahead of the BRICS Summit in September. He also invited Indian delegates to attend the Eastern Economic Forum in Vladivostok, Russian Energy Week, the Made in Russia Forum and other upcoming events.
“This could include the construction of new generating facilities in India, including small-capacity units, as well as localising the production of equipment and nuclear fuel. In addition, Rosatom is discussing mutually beneficial forms of cooperation with Indian partners in developing the Northern Sea Route. Its competitive advantages are clear today, and using this Arctic route would help reduce transport costs for businesses,” he added.
Putin-Modi meeting and BRICS Summit
India is set to host the BRICS Summit next month in Delhi — with leaders from 11 member nations in attendance. The meeting will also coincide with Russian President Vladimir Putin’s expected visit to India on September 12 and 13.
“Prime Minister Modi looks forward to meeting you at the SCO Summit, then welcoming you to India for the BRICS Summit, and, in due course, as per your mutual convenience, having the annual summit, so we have a very strong picture of cooperation to present,” Jaishankar told Putin on Monday.
The Indian foreign minister had also handed over a personal message from Prime Minister Narendra Modi to Russian President Vladimir Putin during their meeting at the Kremlin.
“And at the beginning of our conversation, I would like to ask you to convey my best wishes to Modi. I hope to see him soon, as we planned, within the framework of the Shanghai Cooperation Organisation very soon. Our schedule is such that we will probably be able to meet again this year,” came the response.