2nd Largest Trade Partner Of Russia, India Wants Deficit Addressed
NEW DELHI (ANI) – During his visit to India on November 12, Russia’s First Deputy Prime Minister Denis Manturov highlighted the significant progress in bilateral trade between the two nations while emphasizing the potential for further growth. “Here I would like to point out the stable positive dynamics, and over the last five years, trade turnover of our country has grown more than fivefold. India is now the second country among all the foreign economic partners of Russia,” Manturov said. He also pointed to the continuation of this positive trend in 2024, with a 9% increase in trade turnover in the first eight months compared to last year. He noted the diversification of trade, with traditional exports of energy sources and mineral fertilizers alongside growing food exports such as sunflower and soybean oil. Additionally, Russia’s imports from India include industrial equipment, components, pharmaceutical drugs, and substances.
However, India’s External Affairs Minister, S. Jaishankar, while addressing the India-Russia Business Forum in Mumbai alongside Manturov, acknowledged the imbalance in the trade relations between the two countries. Jaishankar emphasized that the trade deficit, which has reached nearly $57 billion, needed urgent redress. “The balance of trade, however, needs urgent redressal since it is so one-sided. It is imperative that non-tariff barriers and regulatory impediments are speedily addressed for this to happen,” Jaishankar remarked.
Jaishankar further pointed out that while the current bilateral trade figure of $66 billion is significant, the goal of reaching $100 billion by 2030 is within reach. However, for that to happen, steps must be taken to address the trade imbalance. He called for solutions to banking and payment-related issues, logistical challenges, and market access. “Our bilateral trade is today at $66 billion. This makes the goal of reaching $100 billion by 2030 more than realistic,” Jaishankar stated.
Both sides have expressed optimism about the potential for future growth, but it is clear that addressing trade imbalances and removing existing barriers will be key to realizing the full potential of India-Russia economic relations.
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