New Delhi: Prime Minister Narendra Modi has expressed confidence that India and Russia will achieve their $100 billion bilateral trade target well before the 2030 deadline. Speaking at the India-Russia Business Forum on Friday, alongside Russian President Vladimir Putin, Modi highlighted the expanding areas of cooperation between the two nations, including logistics and connectivity, marine products, automobiles, pharmaceuticals, and textiles.
Modi noted that last year, he and Putin set the goal of reaching $100 billion in bilateral trade by 2030. "However, after further discussions with President Putin and considering the tremendous potential in our partnership, I am confident that we will achieve this target well ahead of schedule. We are making rapid progress towards this goal," Modi stated.
President Putin emphasized the importance of the early signing of a preferential trade agreement between India and the Eurasian Economic Union (EEU), stating that it would reduce barriers and facilitate smoother movement of goods, services, and capital. He also reiterated that both regions must work to ensure uninterrupted financial transactions through resilient settlement, payment, and insurance mechanisms, and he noted the advantages of using national currencies in trade.
Both leaders reaffirmed their commitment to strengthening economic ties and expanding strategic cooperation across multiple sectors under their "Special and Privileged Strategic Partnership". They aim to expand bilateral trade in a balanced and sustainable manner by boosting India's exports to Russia, strengthening industrial and technological cooperation, and developing new investment partnerships, particularly in high-technology sectors.
To facilitate trade and investment, Modi stressed that simplified and predictable mechanisms are being created for businesses, and discussions have already begun on a free trade agreement with the EEU. Both sides appreciate the progress towards a Free Trade Agreement between India and the Eurasian Economic Union and have directed negotiators to intensify efforts on a mutually beneficial pact on the promotion and protection of investments.
The leaders witnessed the signing of multiple agreements across sectors including fertilizers, food safety, health, migration, maritime logistics, and energy. Key developments included Russia assuring India of uninterrupted fuel shipments and Indian companies signing a deal with Russia's URALCHEM to establish a urea plant in Russia. Agreements also involved India's FSSAI and Russia's consumer protection body.
The current annual bilateral trade stands at $68.7 billion. To reach the $100 billion target, India and Russia have agreed to continue developing bilateral settlement systems using national currencies to ensure uninterrupted trade. They also addressed the need to address tariff and non-tariff barriers, streamline logistics, improve connectivity, and resolve insurance and reinsurance challenges.
Modi also mentioned the opening of two new Indian consulates in Russia last month and introduced two new 30-day visa schemes that would be made available for Russian tourists in India soon.
The Prime Minister concluded by emphasizing the mutual trust between India and Russia, stating, "The greatest strength of India-Russia relations is this trust. It is this trust that gives direction to our joint efforts and also provides momentum,". He added that this trust serves as a launchpad for new dreams and aspirations.
