On a visit to Moscow, India’s External Affairs Minister S. Jaishankar has outlined strategies to enhance the trade relationship between India and Russia and to tackle the significant trade deficit of $58.9 billion, primarily driven by India’s increased oil purchases from Russia. Jaishankar emphasized the urgent need to address this trade imbalance. Ahead of his meeting with Russian Foreign Minister Sergey Lavrov, a Russian statement highlighted the focus on promoting transportation, logistics, banking, and financial systems that operate independently of countries imposing sanctions. There is also a push to increase the use of national currencies in bilateral transactions.
Jaishankar suggested various measures to diversify trade relations and alleviate the imbalance. These include addressing tariff and non-tariff barriers, removing logistical bottlenecks, enhancing connectivity, streamlining payment mechanisms, and expediting the finalization of the India-Eurasian Economic Union Free Trade Agreement, the terms of which were settled recently. He noted that these actions would not only help correct the imbalance but also accelerate progress toward the revised trade target of $100 billion by 2030.
During the visit, Jaishankar called for advancing connectivity through initiatives like the International North-South Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Corridor. He also urged for timely execution of the Program of Economic Cooperation, set to extend through 2030. On Thursday, Jaishankar is scheduled to discuss regional and global issues, including updates on the Russia-Ukraine conflict, in talks with Lavrov, who is expected to provide insights regarding the recent Russia-U.S. summit in Alaska.
Leading up to their meeting, the Russian Foreign Ministry stated that the basis of the privileged strategic partnership between India and Russia is built on mutual trust and respect. They plan to explore opportunities for enhanced cooperation in sectors such as transportation, energy, agriculture, and scientific technology.
Original Source: https://timesofindia.indiatimes.com/india/trade-deficit-rising-due-to-oil-buy-need-to-address-it-eam-in-russia/articleshow/123418117.cms
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Publish Date: 2025-08-21 00:31:00
