With the backdrop of the United States imposing a 50% tariff on Indian goods, External Affairs Minister S Jaishankar has encouraged increased trade between India and Russia. He urged Russian businesses to engage more actively with their Indian counterparts, highlighting India’s rapidly growing economy and initiatives such as ‘Make in India,’ which present significant opportunities for foreign entities. Jaishankar emphasized the need for Russian businesses to seize these opportunities for deeper engagement.
Jaishankar stated that India’s substantial GDP, currently at over USD 4 trillion and growing at 7% annually, necessitates a dependable supply of essential resources, including products like fertilizers, chemicals, and machinery. He further noted that India’s infrastructure development offers substantial business prospects for companies with a strong domestic track record. Initiatives such as ‘Make in India’ and ongoing urbanization and modernization are creating new demands, which represent invitations for Russian companies to engage with their Indian counterparts.
Recognizing the historical stability of the India-Russia relationship, Jaishankar stressed the importance of diversifying and balancing trade between the two nations. He noted that while the relationship has been steady, economic cooperation has not fully reflected this, with trade volumes and the trade deficit remaining limited. He advocated for more concerted efforts to achieve higher trade targets and sustain existing levels.
Jaishankar also promoted deeper cooperation to foster growth and development, and expressed India’s openness to investments, joint ventures, and other collaborative endeavors. He highlighted the potential for mutual benefit between India and Russia, with governments providing guidance and creating favorable conditions for economic activity. Discussions have focused on trade, investments, and joint ventures, with an emphasis on key areas where demand is already established. The signing of Terms of Reference (ToR) for the India-Eurasian Economic Union Free Trade Agreement was also mentioned, which is expected to enhance trade. Furthermore, initiatives in skill development, mobility, and improved connectivity are underway. Jaishankar concluded by emphasizing the need for businesses to move forward confidently and for close collaboration between governmental discussions and business planning.
Jaishankar’s push for increased trade with Russia comes in response to the US’s recent imposition of substantial tariffs on Indian goods, which includes a 25 percent ad valorem duty, with an additional 25 percent tariff set to take effect on August 27, bringing the total duty to 50 percent.