India and Russia have agreed to strengthen economic cooperation, aiming to increase their bilateral trade to $100 dollars by 2030. This announcement came during a meeting between Indian external affairs minister S. Jayshankar and Russian foreign minister Sergey Lavrov in Moscow.
This development comes at a time when the United States has imposed high tariffs on Indian experts, including a 50% duty on goods affecting India’s $85 billion annual exports to the US.
Trade Target And Economic Cooperation
At the India-Russia business forum, Jaishankar highlighted the need to remove trade obstacles and reduce non-tariff barriers to achieve the $100 billion goal.
Currently, Russia is India’s fourth largest trading partner, while India ranks as Russia’s second largest partner. Both countries signed terms of reference for a free trade agreement with the Russian-led Eurasian Economic Union (EAEU) which includes Belarus, Kazakhstan, Kyrgyz Republic, and Russia.
The EAEU has a combined GDP of $6.5 trillion, and is expected to provide Indian exporters, including small and medium enterprises, with greater access to the Russian market.
Response To The Tariffs
Jaishankar defended India’s continued purchase of Russian oil, saying that India is not the largest importer; China and the European Union import more from Russia. He also pointed out that India had previously been encouraged by the US to stabilize the global energy market, including through Russian oil imports.
Russian charge the d’affaires Roman Babushkin criticised the US tariffs as unjustified and unlawful, adding that Russia has ways to maintain oil supply to India and that the Russian market is open to Indian goods if US access is restricted.
Strategic Partnership Expansion
The meeting also focused on long-term cooperation between the two countries. Some key initiatives included enhanced diplomatic presence, opening new consulates, and increasing people-to-people exchanges. And India offers skilled workers to fill gaps in various Russian industries.
Both countries reaffirmed collaboration in international forums like BRICS, G20, and the Shanghai Cooperation Organisation. Lavrov praised India’s balanced approach in global affairs. The meeting also makes space for Russian President Vladimir Putin’s visit to India later this year.
FAQs
- Why are India and Russia aiming for $100 billion trade?
The target is a part of strengthening bilateral ties and providing alternatives as the US affects Indian exports.
- What are the US tariffs on India?
India has imposed a 50% tariff on Indian goods, including a 25% penalty for India’s oil imports from Russia
- What is the Eurasian Economic Union?
The EAE is a group of five countries, including Russia, Armenia, Belarus, Kazakhstan, and the Krygyz Republic, with a combined GDP of $6.5 trillion.
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