India and Russia Set Ambitious $100 Billion Trade Goal for 2030

Ira Singh
Khabar Khabaron Ki,10 July’24

India and Russia agreed to increase bilateral trade to $100 billion by 2030, including the use of national currencies to circumvent Western sanctions. This strategic decision was made during the 22nd Annual Summit, where Indian Prime Minister Narendra Modi and Russian President Vladimir Putin engaged in extensive talks. The use of national currencies is aimed at reducing dependency on the US dollar, thereby fostering smoother and more resilient trade operations between the two countries.

Modi paid a two-day visit to Russia, his first to the country since the start of the war in Ukraine.

The two sides also inked a total of nine agreements to further broadbase cooperation in a range of areas including in the economic domain following summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin.

India and Russia Focus on Economic Engagement and ‘Make in India’ Initiatives
In a significant move to bolster economic ties, India and Russia have centered their discussions on enhancing economic engagement and supporting India’s ‘Make in India’ initiative. Foreign Secretary Vinay Kwatra, reportedly highlighted the major thrust of the talks, emphasizing how the partnership can invigorate manufacturing collaborations between the two nations.

“A significant component of the discussions was devoted to how the partnership between India and Russia can also give fillip to ‘Make in India’ and other manufacturing partnerships,” Kwatra stated. He further mentioned that Prime Minister Narendra Modi stressed the need to broaden the overall trade basket and advocated for greater market access for Indian goods in Russia, particularly in the agricultural and industrial sectors.

PM Modi’s push for a diversified trade basket aims to not only strengthen India’s export portfolio but also to spur growth in its domestic industries.The leaders also emphasized critical economic areas that are vital for the growth of various sectors in both countries, notably highlighting fertilizer supplies from Russia to India, which is directly linked to the crop production and the farmers’ yield in India, he stated.

In terms of specific targets, the two leaders have set a new trade target of $100 billion by 2030,” Kwatra reportedly stated.The current bilateral trade volume is around $60 billion(Rs 5 lakh crore) according to information.

During their recent summit, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin discussed advancing the India-Eurasian Economic Union (EAEU) trade and goods agreement.

The two sides also released a ‘leaders’ joint statement on the development of strategic areas of Russia-India economic cooperation for the period up to 2030′.It delineates strategic areas of cooperation, emphasizing sectors crucial to both nations’ development, including energy, defense, technology, and trade.

The statement underscores the introduction of digital financial instruments for mutual payment settlements as a consistent priority. This technological advancement is expected to streamline financial transactions and promote efficiency in trade and investment activities.

Furthermore, the leaders highlighted key energy sectors for collaboration, including nuclear energy, oil refining, and petrochemicals. The document emphasizes the expansion of partnerships in energy infrastructure, aiming to bolster energy security and support sustainable development initiatives.

In light of global energy transitions, the statement underscores the importance of mutual and international energy security. It outlines strategies to navigate evolving energy landscapes while addressing future energy demands and promoting stability in the global energy market.

The statement also highlighted the sides’ recognition of current collaboration in the coal sector and their mutual interest in exploring avenues to expand coking coal supply to India, as well as exploring opportunities for exporting anthracite coal from Russia to India.

Ambitious bilateral trade target
Achieving the $100 billion bilateral trade target by 2030 seems feasible given the current momentum, with trade already reaching approximately $65 billion. The surge in India’s imports of discounted Russian crude following global oil sanctions has significantly bolstered trade figures. President Putin reportedly highlighted the impressive growth in Russia-India trade, which rose by 66% last year and continued to expand by 20% in the first quarter of 2024 alone.

If realized, this ambitious target would elevate the India-Russia economic partnership to levels akin to India’s robust trade relationships with major economies such as the U.S., China, and the European Union. This indicates a promising trajectory for deeper economic cooperation and mutual benefit between the two nations.