India and Russia intend to increase bilateral trade to $100 billion by 2030, balance trade imbalances, reduce non-tariff trade obstacles, and investigate the potential of a Eurasian Economic Union (EAEU)-India Free Trade Area. On Tuesday, a joint statement issued following multiple rounds of talks between Prime Minister Narendra Modi and Russian President Vladimir Putin announced that both countries intend to establish a bilateral settlement system based on national currencies and incorporate digital financial instruments into mutual settlements.Putin presented Modi with the 'Order of St Andrew the Apostle' honor in recognition of his efforts to strengthen bilateral ties between the two countries. India and Russia intend to increase bilateral trade to $100 billion by 2030, reduce trade imbalances, eliminate non-tariff trade barriers, and examine the possibilities of An EAEU-India Free Trade Area. On Tuesday, a joint statement issued following multiple rounds of talks between Prime Minister Narendra Modi and Russian President Vladimir Putin announced that both countries intend to establish a bilateral settlement system based on national currencies and incorporate digital financial instruments into mutual settlements. Putin presented Modi with the 'Order of St Andrew the Apostle' honor in recognition of his efforts to strengthen bilateral ties between the two countries.
The prime minister delivered an unambiguous message on the ongoing Ukraine war, telling Putin that peace efforts do not succeed in the midst of bombs and bullets. He also expressed concern about a deadly missile strike on a children's hospital in Kyiv, saying "when we see innocent children dying, it is heart-wrenching, and that pain is very horrible." The Russian president praised Modi for "trying to find ways to resolve the Ukraine crisis, primarily through peaceful means". Economic cooperation, particularly in energy, trade, manufacturing, and fertilizers, dominated the agenda during Modi's two-day trip to Moscow. The prime minister sent a strong message on the ongoing Ukraine war, telling Putin that peace attempts do not succeed in the midst of bombs and bullets, and also flagged Concerns have been raised over a devastating missile strike on a children's hospital in Kyiv, with the statement "when we see innocent children dying, it is heart-wrenching and that pain is very horrible." The Russian president praised Modi for "trying to find ways to resolve the Ukraine crisis, primarily through peaceful means". Economic cooperation, particularly in energy, trade, manufacturing, and fertilizers, dominated the agenda during Modi's two-day trip to Moscow. The two parties have asked for "increased supplies of goods from India to achieve balanced bilateral trade" alongside the reinvigoration of investment within the framework of the special investment regimes".
"The main focus of Modi and Putin's conversation was economic engagement... By 2030, the two leaders want to reach a new goal of $100 billion. In addition, at a briefing on the prime minister's travel to Russia, Foreign Secretary Vinay Mohan Kwatra stated, "They have also agreed on the joint statement on economic cooperation, specifically till 2030."
India and Russia had $65.6 billion in bilateral trade in FY24, up 33% from the previous year and about 5.5 times greater than the $10.1 billion pre-pandemic level of commerce. Despite persistent criticism from Western countries, bilateral commerce has expanded, particularly since 2022, as Indian fuel importers have been grabbing up inexpensive Russian oil.
Additionally, India promoted the idea that commerce between the two nations should be expanded, particularly in terms of increased market access for products in the industrial and agricultural sectors. The agreement also mentioned increased collaboration in important energy sectors, such as petrochemicals, nuclear energy, and oil and gas refining, with an emphasis on "facilitation of mutual and international energy security, taking into account the prospects of global energy transition."
Given that just $4.2 billion in exports were made to Russia, both parties emphasized the importance of boosting commerce in food, fertilizers, and agricultural items. India's trade deficit with Russia was $57 billion in 2023–2024 deployment of sophisticated digital technology to optimize customs processes and enable barrier-free commodities flow. According to the two sides, a significant portion of this commerce is anticipated to occur via important international routes including the Chennai-Vladivostok Sea Line, the Northern Sea Route, and the North-South International Transport Corridor.
There was also talk of a trade pact between the Eurasian Economic Union (EAEU), which is made up of Armenia, Kyrgyzstan, Belarus, Kazakhstan, and Russia. The necessity of advancing the trade goods agreement between India and the Eurasian Economic Union was also discussed by the two presidents. The two nations held one round of talks, and Kwatra predicted that they would pick up speed in the coming months.
Additionally, the statement has called for the establishment of industrial clusters and subsidiaries to facilitate the entry of Russian and Indian businesses into each other's markets. In a similar vein, both have advocated for the establishment of new joint (subsidiary) businesses by offering advantageous tax treatment.
The promotion of collaboration and investments in a range of digital economy sectors, science and research, educational exchanges, and internships for high-tech company staff have also been prioritized.
