Jaishankar discusses the importance of trade with Russia for India, citing “uranium, crude oil, and coal.”
A trade deficit is also highlighted by EAM, which co-chairs an India-Russia conference with the Russian first deputy prime minister. Last year, Indian exports were just $4.2 billion, while Russian imports totaled $61.1 billion.
New Delhi (TAT): Trade with Russia for India: External Affairs Minister S. Jaishankar stated on Tuesday that Russia’s provision of energy resources, including coal, crude oil, and uranium, is a “critical” foundation of relations between New Delhi and Moscow and is very “important” for India.
The minister stated that the two nations will also be talking about collaboration that is essential for India’s food, energy, and health security during the 25th session of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological, and Cultural collaboration (IRIGC-TEC).
“Russia has become one of our main suppliers of fertilizers. He stated in his opening remarks at IRIGC-TEC, which he co-chaired with Denis Manturov, Russia’s first deputy prime minister, in New Delhi, that “its supply of crude oil, coal, and uranium are indeed important.”
A deeper connection between the two nations “has a larger resonance” in the context of “an increasingly multipolar world,” Jaishankar continued. “We applaud and completely reciprocate Russia’s increasing interest in investigating India’s economic prospects.”It’s impressive that bilateral trade has grown to an estimated $66 billion,” he remarked.
The two nations “benefit from the trust and confidence built” over the years, Jaishankar continued, adding to their expanding economic connection, particularly after Russia refocused its attention on Asia following the start of the war in Ukraine in 2022.
The highest level government-to-government platform for talking about India and Russia’s bilateral economic cooperation is called the IRIGC-TEC. The forum, which is co-chaired by the deputy prime minister of Russia and the foreign minister of India, incorporates input from many working groups on trade and economic issues. It met for the first time in 1994.
On November 11 and 12, Manturov is in New Delhi for a two-day visit. At the India-Russia business event in Mumbai on Monday, Jaishankar and Manturov both had meetings with prominent Indian businesspeople. Late on Monday night, Manturov paid Prime Minister Narendra Modi a visit in New Delhi.
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Energy supply from Russia to India
Since 2022, Russia has emerged as India’s top supplier of mineral resources, such as coal and crude oil, as Europe boycotted it due to the crisis in Ukraine. Moscow was India’s tenth-largest supplier of mineral fuels in the fiscal year 2021–2022, with New Delhi buying $5.25 billion worth of such fuel.
According to figures released by the Ministry of Commerce and Industry, Russia had risen to the top by the following year, with exports to India reaching $38.8 billion, a 639 percent increase.
In 2023-24, Russia retained its top rank, with India importing $54 billion worth of mineral fuels, over two times greater than its next biggest partner nation, Iraq. Between April and August this year, India imported $24 billion worth of mineral fuels.
Jaishankar previously said that New Delhi was hoping for a “thank you” from the globe for its strategic purchases of Russian oil last year, which helped to lower global inflation.
Aside from France, Russia was the sole nation to provide India with uranium in 2023–2024. In the fiscal year, uranium imports from Russia totaled about $13 million.
Trade disparity and difficulties
But in his opening statement on Tuesday, Jaishankar urged more “balanced” trade. The two nations’ bilateral trade reached $65.4 billion last year, falling short of their 2030 target of $100 billion.
However, compared to its $61.1 billion in imports during the same time period, India’s exports to Russia were a pitiful $4.2 billion. India’s purchases of mineral fuels from Russia accounted for nearly all of this massive trade deficit.
Our objective is that it must be more balanced, which calls for resolving existing issues and implementing supportive measures. To facilitate commerce, the India-Eurasian Economic Union (EAEU) Free commerce Agreement (FTA) discussions should advance, Jaishankar stated.
Negotiations for a free trade agreement (FTA) between India and the EAEU, a trading union made up of five economies (Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia), started in March 2024. Following their yearly summit in Moscow in July, India and Russia are also looking into bilateral agreements in services and investments.
But according to Jaishankar, logistics and payments have remained a barrier to the expansion of commerce between Russia and India.
Manturov argued for strengthening links, particularly in the fields of digital technology, space exploration, and nuclear power. In particular, the Russian first deputy prime minister aimed to provide the technology needed for Gaganyaan, India’s first human-crewed space trip.
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