Top diplomats from Russia and India convened recently to discuss strengthening trade and economic cooperation, as well as address pressing issues on the global agenda. The meeting, held in Moscow, occurred against the backdrop of increasing trade between the two nations, alongside growing geopolitical complexities, including rising tensions between India and the United States.
A key focus of the discussions was the burgeoning, yet imbalanced, bilateral trade relationship. Indian External Affairs Minister S. Jaishankar highlighted the remarkable five-fold increase in trade between the two countries, surging from $13 billion in 2021 to $68 billion in 2024-25. However, he also pointed out the widening trade imbalance, which has grown nearly nine-fold, from $6.6 billion to $58.9 billion over the same period. This imbalance is a major concern for India, and addressing it was a key priority during the talks. To address this, both sides are looking at ways to diversify the trade basket, reduce tariff and non-tariff barriers, and ease bottlenecks in logistics.
One significant step towards bolstering trade ties is the renewed effort to finalize a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU), which includes Russia, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic. Both sides signed Terms of Reference to launch negotiations for the FTA. With a combined GDP of $6.5 trillion, the FTA is expected to provide enhanced market access for Indian exporters, support diversification into new sectors and geographies, and improve competitiveness for Micro, Small and Medium Enterprises (MSMEs).
Discussions also focused on streamlining payment mechanisms and promoting connectivity through initiatives such as the International North-South Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Corridor. These routes are expected to improve trade efficiency and reduce transportation costs.
The meeting took place amidst increasing strain in India-U.S. relations, following the U.S. government's decision to impose additional tariffs on Indian goods and a penalty for India's continued import of crude oil from Russia. Russia has criticized these measures, calling them "unjustified and unilateral". Russia has also assured India of a "special mechanism" to counter the impact of U.S. sanctions on oil imports. Despite the U.S. pressure, India has maintained that its oil imports are guided by national interests and market conditions.
Beyond trade and economic issues, the diplomats also exchanged views on pressing international developments, including the conflict in Ukraine, the situation in Afghanistan, and the evolving security architecture in the Asia-Pacific region. Both India and Russia advocate for a multipolar world order and have expressed commitment to strengthening cooperation across various multilateral platforms, including the UN, BRICS, SCO, and G20.
Cultural collaboration was also on the agenda, with both sides noting positive momentum in educational exchanges and flourishing cultural ties, including in the realm of cinematography. Plans are underway for the release of a Russian-Indian film, "Zhemchug" (Pearl), in the autumn of 2025. The growing interest in Russia among Indian citizens has also led to increasing tourist flows between the two countries.
Overall, the meeting between the top Russian and Indian diplomats underscored the commitment of both nations to deepen their strategic partnership, with a focus on strengthening economic ties, addressing global challenges, and promoting a multipolar world order.
