India's External Affairs Minister S. Jaishankar has recently addressed the growing trade imbalance between India and Russia, emphasizing the urgent need for both nations to collaborate in rectifying this issue. His remarks come against the backdrop of increasing strain in India-US trade relations due to newly imposed tariffs.

During the 26th Session of the India-Russia Inter-Governmental Commission for Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) in Moscow, Jaishankar highlighted the significant increase in bilateral trade between India and Russia. Trade has increased more than fivefold in the last four years, from $13 billion in 2021 to $68 billion in 2024-25. However, this growth has been accompanied by a major trade imbalance, which has widened from $6.6 billion to $58.9 billion, an almost nine-fold increase.

Jaishankar stressed that this imbalance needs to be addressed urgently. He called for the removal of tariffs and non-tariff barriers that are negatively impacting Indian exports. Furthermore, he emphasized the importance of connectivity projects in unlocking the true potential of economic ties between the two countries.

The Russian Embassy in India has also acknowledged the need to reduce the trade imbalance and has expressed Moscow's commitment to working towards this goal. According to Reuters, the embassy stated that Russia aims to narrow the trade imbalance with New Delhi while continuing energy supplies and seeking to remove trade barriers. They have mechanisms in place to ensure a steady flow of oil to India, regardless of the current political climate.

India has become one of the largest buyers of Russian crude oil since 2022, particularly as Western sanctions have altered global oil trade flows. Evgeny Griva, the deputy trade representative of Russia in India, mentioned that Russia sells oil to India at a discount of about 5%, giving Asia's third-largest economy few alternatives.

The discussions on trade come at a time when India's trade relations with the United States are facing new challenges. There are reports that the US team would not be traveling to India for the sixth round of bilateral trade negotiations, which were scheduled for August 25. Furthermore, the United States has imposed an additional 25% tariff on Indian goods, bringing the total levy to 50%, along with an unspecified penalty for India's continued oil imports from Russia.

In light of these challenges with the U.S., Roman Babushkin, Chargé d'Affaires of the Russian Embassy in India, remarked that "if Indian goods are facing difficulties entering the US market, the Russian market is welcoming Indian exports". Babushkin also added, "India matters very much to Russia. We understand the challenging circumstances for India, and we are committed to remove them". The embassy also highlighted that India is Russia's fourth-largest trade partner. They also stressed the need to improve payment mechanisms with India.