India and Russia completed their trade agreements on Friday. These treaties intend to enhance the connection and make trade between the two countries easier. The top authorities of both nations want to achieve $100 billion in trade exchange by 2030. According to the agreements, the Department of Posts and JSC Russia Post have together agreed to the use of the International Tracked Packet Service. The event took place during the India-Russia Annual Summit in New Delhi, which was a two-day visit of Russian President Vladimir Putin.
Postal Agreement Supports Small Enterprises in Selling Goods in Russia
This Postal Service Agreement will create a trackable method for shipping low-value goods between the two nations. It includes provisions for advanced data and end-to-end tracking. Delivery efficiency is enhanced by the agreement. Small and medium enterprises, craftspeople, startups and rural business owners are now being focused on. They will now have the opportunity to market their products on online marketplaces, with favourable logistics costs. Russia has been a lucrative market for different kinds of goods such as health products, clothing, jewellery, and household items.
The major agreement that was laid out between India and Russia for economic cooperation to 2030: Sector-wise Progress Programme, which was signed by Prime Minister Narendra Modi and President Putin. Modi was pretty sure that the two countries would smash their $100 billion trade target way ahead of 2030. The volume of trade between the two countries has set a record of $68.7 billion in the year 2024-25. The Associated Chambers of Commerce & Industry of India and the Roscongress Foundation also signed a partnership agreement on Friday. This facilitates efforts in exports, investments and technology transfer.
Agreements Regarding Agriculture and Labour Finalised Too
On Thursday, the Union Agriculture Minister, Shivraj Singh Chouhan, met with his counterpart, and they had discussions. They both agree to deepen the cooperation in these sectors of trade, fertilisers, seeds and market accessibility. The agricultural trade between the two sides amounts to $3.5 billion. India thanked Russia also for solving the issues related to the export of potatoes, pomegranates and seeds.
Agreements concerning the transfer of labour were also signed by the two countries. This arrangement would enable professionals to work inthe Russian construction, engineering and IT industries. The joint declaration mentioned that addressing tariff and non-tariff obstacles is crucial. Additionally, resolving issues and ensuring efficient payment mechanisms are vital. These elements are essential to achieve the trade goal.
Trade between Russia and India has grown significantly in the years. This growth largely stems from India’s purchasing of oil. Following the sanctions nations placed on Russia due to Ukraine India kept buying Russian oil at discounted rates, boosting trade figures. However, both nations aim for an equal trade relationship. Currently, India mainly imports oil from Russia while Russia seeks to acquire goods from India. The postal service agreement supports Indian enterprises in marketing their products in Russia. Previously, shipping expenses were steep. Currently, due to improved rates and tracking, a greater number of businesses can market their products there.
The labour contracts permit Indian employees to work in Russia. Russia requires labour in sectors. Indian employees possess skills in construction, engineering and IT domains. Payment methods have posed challenges: Due to sanctions on Russia, conventional banking operates less effectively. India and Russia are creating methods to execute payments mutually. They are focusing on utilising their currencies rather than the dollar.
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