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The article highlights the strengthening trade ties between India and Russia, emphasizing a renewed focus on local currency transactions and addressing trade imbalances. External Affairs Minister Dr. S Jaishankar, during the India-Russia Business Forum in Mumbai, underscored the significance of conducting trade in national currencies, particularly in light of current global economic pressures. He emphasized the effectiveness of Special Rupee Vostro Accounts in facilitating mutual settlements and advocated for a more balanced trade framework with national currency settlements as a key component.
One of the critical points raised by Jaishankar was the need to rectify the existing trade imbalance between the two nations. He stressed that non-tariff barriers and regulatory impediments must be swiftly addressed to achieve a more equitable trade relationship. This focus on trade equity is crucial for building a sustainable and mutually beneficial economic partnership between India and Russia.
Beyond the immediate focus on trade balance, the article explores areas of potential collaboration between the two countries. Jaishankar identified several technical and industrial sectors ripe for partnerships, including transportation technology (particularly drone development), nuclear energy projects involving high-power turbines, advancements in healthcare through medical technology and pharmaceuticals, and boosting agricultural productivity. These areas demonstrate India’s strategy to diversify its economic cooperation with Russia beyond traditional sectors.
The importance of connectivity in facilitating trade expansion is also emphasized. The article highlights key initiatives like the International North-South Transport Corridor (INSTC), the Chennai-Vladivostok Corridor, and the Northern Maritime Route, which aim to streamline trade routes and reduce logistical challenges. These projects are essential for enhancing bilateral trade flow and strengthening the economic relationship between the two countries.
The article further touches upon ongoing efforts to strengthen investment ties. It mentions the India-Eurasian Economic Union trade negotiations, which commenced in March, and the first Bilateral Investment Forum held in Moscow in April 2024. The importance of expediting discussions on the Bilateral Investment Treaty is highlighted as a crucial step towards bolstering investor confidence and creating more opportunities for economic engagement. The program for cooperation regarding the Russian Far East from 2024-29, signed in July during the Annual Summit, further emphasizes India’s commitment to enhancing partnerships in underdeveloped regions and tapping into new areas of growth.
The article highlights the role of Special Economic Agreements in facilitating trade. The bilateral agreement between the customs authorities of India and Russia on Authorized Economic Operators (signed in May 2024) has streamlined customs procedures and fostered a more efficient trading environment. This agreement underscores the collaborative spirit between the two nations to create a more robust and streamlined trade framework.
Beyond the economic aspects, the article touches upon the broader societal connections between India and Russia. Both nations are actively engaging in educational and cultural exchanges, including collaborative film projects, recognizing the importance of these connections in strengthening bilateral relationships. Minister of Industry and Trade of the Russian Federation, Denis Manturov, reinforces this sentiment by emphasizing the continued strengthening of Russia-India business relations despite external economic pressures.
The article concludes by highlighting upcoming engagements aimed at further nurturing bilateral trade and economic ties. The India-Russia Inter-Governmental Commission meeting scheduled for November 12, 2024, will review ongoing cooperation and chart the path forward. The inauguration of the Russian Business Center in New Delhi, spearheaded by the Business Council for Cooperation with India and Synergy Corporation, aims to facilitate deeper commercial engagement by serving as a hub for events, missions, seminars, and conferences.