On November 11, 2024, Dr. S. Jaishankar, India’s External Affairs Minister, addressed the India-Russia Business Forum in Mumbai, underscoring the growing economic and strategic partnership between the two nations. The forum, held just months after the Annual Summit between Indian and Russian leaders in Moscow, provided a platform to discuss new business opportunities, enhance cooperation, and solidify the bilateral ties that have flourished over the decades.
Strengthening the Strategic Bond Between India and Russia
In his speech, Dr. Jaishankar emphasized the increasingly multi-polar world and how India and Russia are positioning themselves to better navigate this evolving landscape. The rise of Asia in global affairs, coupled with Russia’s pivot towards the East since 2022, has opened up numerous opportunities for economic cooperation. The minister highlighted the complementary nature of the two economies: India’s rapid growth and Russia’s wealth of natural resources and technological expertise make them natural partners. Jaishankar’s words echoed the sentiment that this partnership could not only benefit both nations but also play a significant role in global economic stability.
Key Developments in the India-Russia Partnership
- Bilateral Trade Growth: India and Russia’s trade reached USD 66 billion in 2024, and the goal of USD 100 billion by 2030 is now a realistic target. Jaishankar acknowledged the need to address the trade imbalance, emphasizing the urgency of tackling non-tariff barriers and regulatory issues that currently hinder the balance of trade.
- India-Eurasian Economic Union (EAEU): A major milestone was reached in March 2024 with the commencement of trade negotiations between India and the Eurasian Economic Union. This agreement promises to further deepen economic ties between India and Russia, particularly in sectors like energy and infrastructure.
- Investment Forum and Bilateral Agreements: The India-Russia Investment Forum held in April 2024 in Moscow was another significant step forward. Jaishankar stressed the importance of expediting negotiations on a Bilateral Investment Treaty to facilitate smoother investment flows between the two nations.
- Focus on Russian Far East: During the Annual Summit, the two countries signed a cooperation agreement focusing on the Russian Far East (2024-2029), a region rich in energy and natural resources. This initiative will focus on boosting connectivity, trade, and socio-economic cooperation.
- National Currency Settlements: Amid current global economic challenges, mutual settlements in national currencies have become critical. Jaishankar emphasized that Rupee-Vostro accounts are proving effective, and further efforts are being made to increase the use of national currencies in trade between India and Russia.
- Infrastructure and Connectivity: The India-Russia cooperation in connectivity initiatives like the INSTC (International North-South Transport Corridor), Chennai-Vladivostok Corridor, and the Northern Maritime Route was also highlighted. These projects are essential for facilitating smoother trade routes and enhancing access to each other’s markets.
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A Broader Vision for India-Russia Relations
Jaishankar went on to stress that the partnership between India and Russia is not just transactional but aimed at building long-term, sustainable relationships. This is particularly relevant in sectors such as energy, where both countries are looking to cooperate in areas like oil, gas, coal, and uranium. These resources are critical to meeting the growing energy demands of India while helping Russia secure reliable markets for its vast natural resources.
Another key focus is on human resources and demographic imbalances between the two nations. India, with its young and skilled workforce, has a crucial role to play in meeting Russia’s demand for skilled labor in various sectors. A customized approach to meet Russia’s labor needs, particularly in technology and manufacturing, is a natural extension of this growing cooperation.
The Role of the Business Community
As the business community in both countries continues to explore new avenues for growth, Dr. Jaishankar emphasized the importance of finding solutions to logistical and banking challenges. Issues like shipping, insurance, and market access need to be addressed to ensure that businesses in both India and Russia can benefit from the enhanced bilateral relations. He expressed confidence that discussions at the forum would lead to practical and mutually beneficial solutions.
Furthermore, Dr. Jaishankar called attention to the importance of non-economic domains such as education and film in strengthening the people-to-people ties between India and Russia. Such cultural exchanges will contribute to a broader societal connection, fostering goodwill and understanding between the two nations.
Comprehensive Economic Partnership
In closing, the External Affairs Minister noted that the task set by both countries’ leaders to develop a Comprehensive Economic Partnership is well underway. The India-Russia Inter-Governmental Commission (IGC), which will meet in Delhi soon, will take stock of the progress made thus far and help chart a course for the future.
Jaishankar’s address was a reminder of the strategic importance of the India-Russia relationship, one that is built on a foundation of mutual respect, shared interests, and a vision for long-term cooperation. With a focus on enhancing economic ties, increasing trade, and fostering people-to-people connections, this partnership is set to play a pivotal role in the evolving global order.
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