India is keen to capitalize on burgeoning opportunities in the Russian market to enhance bilateral trade, according to New Delhi’s envoy to Moscow, Ambassador Vinay Kumar.
Speaking at the St. Petersburg International Economic Forum (SPIEF), Kumar emphasized plans to further expand the trade relationship between the two nations.
Over the past two years, bilateral trade has nearly tripled, with India significantly increasing its imports of energy, fertilizer, and coal from Russia.
The financial year ending in March 2024 saw trade between the countries reach $65.7 billion, marking a 33% rise from the previous year. Despite this growth, India’s trade deficit with Russia also increased by 33%, reaching over $57 billion.
Kumar highlighted the need to balance trade to sustain growth, calling for improved market access for Indian goods in Russia.
This includes sectors like agricultural products, processed foods, and automobile parts. Additionally, India seeks to attract more Russian investment in its manufacturing sector.
Several Russian companies have already established operations in India, benefiting from the Indian government’s Production Linked Incentive (PLI) scheme, which offers financial rewards for manufacturing across 14 key sectors.
Experts at SPIEF noted that significant strides have been made in resolving payment and logistics issues that previously hampered trade.
The use of national currencies for settlements has increased, and major Russian banks are expanding their presence in India. Moreover, new intermodal services between major ports have reduced shipping times from over 45 days to 20.
Looking ahead, further balancing of trade is anticipated following the conclusion of a free trade agreement between India and the Eurasian Economic Union, which includes Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia. Negotiations for this agreement are currently in an active stage.
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