What's Happening?
India and Russia have committed to expanding their trade relations, aiming to improve market access and streamline business engagement. During the 26th meeting of the India-Russia Working Group on Trade
and Economic Cooperation, Commerce Secretary Rajesh Agrawal and Russia's Deputy Minister of Economic Development Vladimir Ilyichev discussed the sharp rise in bilateral trade, which has more than doubled since 2014. They set a goal to reach $100 billion in trade by 2030. A new protocol covering cooperation across multiple sectors was signed, focusing on expedited listing of Indian establishments under Russia's Federal Service for Veterinary and Phytosanitary Supervision, and developing pathways for pharmaceutical cooperation.
Why It's Important?
The expansion of trade ties between India and Russia is significant for both countries as they seek to diversify and de-risk their trade portfolios. For India, this means increased opportunities in sectors like engineering goods, chemicals, electronics, and pharmaceuticals. For Russia, it provides a chance to access Indian strengths in smartphones, motor vehicles, and textiles. The agreement also highlights the importance of predictable mobility pathways for Indian professionals, which could help address labor gaps in Russia. This development could lead to stronger economic ties and mutual benefits in terms of trade and employment.
What's Next?
Both countries will continue to explore payment solutions tailored to the needs of businesses, particularly micro, small, and medium enterprises. The focus will be on enhancing cooperation in sectors identified during the meeting, such as agriculture and pharmaceuticals. The implementation of the signed protocols will be crucial in achieving the ambitious trade goals set for 2030. Additionally, India will showcase its Global Capability Centre ecosystem to Russian companies, promoting business continuity and cybersecurity.
