External Affairs Minister S Jaishankar on Monday said a partnership between an India that has an 8 per cent growth rate for multiple decades ahead, and a Russia that is a key natural resources provider and a major technology leader, will serve both of the countries and the world well.

”A growing Russian appreciation of Make In India as a program to deepen business will certainly help to take forward our cooperation in many domains,” he said at the India-Russia Business Forum in Mumbai.

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The session was also attended by Russia’s First Deputy Prime Minister Denis Manturov, who is here for the 25th session of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation to be held in New Delhi on Tuesday.

Noting that the business meet is being held barely three months after the Annual Summit between Prime Minister Narendra Modi and Russian President Vladimir Putin in Moscow and their interaction on the margins of the BRICS Summit last month in Kazan, Mr Jaishankar said those occasions have provided a strategic direction, whose economic dimension the two nations seek to realise.

The Indian minister observed that the world is moving towards greater multi-polarity and devising appropriate methods of cooperation is essential for both India and Russia too.

”Moreover, Russia has consciously focused more deeply on Asia since 2022. This has created many more avenues of cooperation. That we have a long history of strong convergence and deep friendship allows us to make the best of both factors. That the two economies are so complementary is also a key consideration,” he added.

He also highlighted certain key developments in bilateral ties. ”Our bilateral trade is today at $66 billion. This makes the goal of reaching $100 billion by 2030 more than realistic. The balance of trade, however, needs urgent redressal since it is so one-sided. It is imperative that non-tariff barriers and regulatory impediments are speedily addressed for this to happen,” he added.

Mr Jaishankar noted that the India-Eurasian Economic Union trade in goods negotiations commenced in March this year and the two countries need to vigorously take it forward.

”The first ever bilateral Investment Forum took place in Moscow in April 2024. We also need to expedite negotiations on the Bilateral Investment Treaty,” he added.
The programme for cooperation in regard to the Russian Far-East from 2024-29 was signed in July during the Annual Summit. It encourages other related activities including in the connectivity sphere, the minister said.

He said that mutual settlement of trade in national currencies is of great importance, especially in the current circumstances. Special Rupee Vostro Accounts are right now an effective mechanism. However, even in the short run, a better trade balance with national currency settlements is the answer.

He observed that the signing of a bilateral agreement between the customs authorities of the two countries in May 2024 on Authorised Economic Operators, has had a big impact on smoothening the ease of doing trade.

The three connectivity initiatives between the two sides, the International North-South Transport Corridor (INSTC), Chennai-Vladivostok Corridor and the Northern Maritime Route, all need continued attention, he said.

He also drew Russia’s attention to the importance of non-economic domains, such as education and film as contributions to a larger societal but also an economic connection between the two countries.

He was confident that the business community in both countries would note and appreciate the strong direction given by the governments to take forward bilateral trade and investment ties.

”It is natural that there would be concerns, such as banking and payment related issues, logistical challenges like shipping, insurance and reinsurance as well as market access. Obviously, we have to find solutions that work to the comfort level of those actually involved in trade,” he added.