Moscow – India’s External Affairs Minister S. Jaishankar, speaking at the 26th India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) in Moscow, highlighted a dramatic five-fold surge in bilateral trade with Russia, rising from $13 billion in 2021 to $68 billion in 2024-25. The session, co-chaired with Russia’s First Deputy Prime Minister Denis Manturov, underscored the urgency of addressing a widening trade imbalance, which has grown from $6.6 billion to $58.9 billion over the same period, largely driven by India’s increased imports of Russian hydrocarbons following Western sanctions.
Jaishankar emphasized the need to eliminate tariff and non-tariff barriers, streamline logistics, and enhance connectivity through initiatives like the International North-South Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Corridor. He also stressed the importance of smooth payment mechanisms to sustain trade growth. The minister advocated for the swift finalization of a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU), noting Russia’s strong support for the pact, which aims to boost overland trade across Russia, China, India, and Central Asia. The IRIGC-TEC finalized the terms of reference for the FTA during the meeting, marking a significant step forward.
Addressing the India-Russia Business Forum in Moscow, Jaishankar called for increased trade, investments, and joint ventures to strengthen the economic pillar of the strategic partnership. The remarks come amid heightened geopolitical tensions, including U.S. President Donald Trump’s imposition of a 50% tariff on Indian goods, with an additional 25% penalty for India’s purchase of Russian crude oil, aimed at pressuring Russia over the Ukraine conflict. Jaishankar’s three-day visit to Moscow, which includes talks with Russian Foreign Minister Sergei Lavrov, seeks to reinforce the enduring India-Russia partnership. The Russian Embassy in India noted a 700% increase in bilateral trade over the past five years, underscoring the deepening economic ties.
India-Russia Trade Soars but Imbalance Sparks Concern
