External Affairs Minister S Jaishankar on Monday (November 11, 2024) said bilateral trade in national currencies is “great importance” in the 25th session of the India-Russia Inter-Governmental Commission meeting. At the beginning of the India-Russia Business Forum in Mumbai, Mr. Jaishankar said bilateral trade between the two countries is currently $66 billion and announced that the figure will touch $100 billion by 2030.
The senior Indian minister reminded the current world geopolitics in which the mutual trade between India and Russia has to move and echo that the world is moving towards a multipolar world. Mutual settlement of trade in national currencies is the great importance, especially in the current scenario. Particularly Rupee Vostro Accounts are right now an effective method. The minister said that even in the short run, a better trade balance with national currency settlements is the answer.
Mr. Jaishankar highlighted The International North-South Transport Corridor, Chennai-Vladivostok Corridor, and Northern Maritime path as the three connectivity initiatives that the two sides are working now. He also said that the signing of a bilateral deal between the customs authorities of India and Russia in May 2024 regarding Authorized Economic Operators has big improved the ease of doing business.
High-level officers from India and Russia are meeting soon after the U.S. Treasury Department placed sanctions on nineteen Indian entities for trade and exchanges with Russian company. This interaction is significant for the recent sanctions.
Mr. Jaishankar emphasized that both countries have given clear direction to strengthen trade between Indo-Russia trade.
In this year, Prime Minister Modi visited Moscow for the annual BRICS summit. He traveled to Kazan for the BRICS summit that was hosted by Russia. A major agenda at the BRICS summit in Kazan was trade in each country’s local currency. The Kazan Declaration emphasized the requirement for conducting business in local currencies for safe national interests.
Apart from Mr. Jaishankar with his officers, the meeting in Mumbai is being attended by Russia’s First Deputy Prime Minister, Denis Manturov. He will lead the Russian delegation during Tuesday’s Inter-Governmental Commission that serves as a major forum for meetings on trade, economic, scientific, technical, and cultural cooperation between the two countries.
Since Russia faced Western sanctions after the 2022 invasion of Ukraine, Indo-Russia trade has grown significantly and Moscow looking to strengthen its connection with Asian countries like India and China, India has continued trading with Russia, especially for energy and technology under U.S. pressure.
Speaking at the meeting, First Deputy Prime Minister Manturov stated that Russia and India are committed to strong direction in cooperation in technology, energy, healthcare, and other fields despite Western pressures. He pointed out that the two countries reached trade record levels last year with the potential for further mutual growth. Manturov emphasized the importance of not only increasing trade volume but also diversity in its structure including more high-tech products.
On November 12, New Delhi hosted the Russian Business Centre in India, initiated by the Business Council for Cooperation with India and Synergy Corporation. According to a press release by the Russian Embassy, the center aims to strengthen business ties and create a platform for Russian and Indian business ties. The event will feature Russian Ambassador Denis Alipov and Head of the Department of External Economic and International Relations of the Moscow City Sergey Cheremin.