NEW DELHI (Diya TV) — India has emerged as Russia’s second-largest trade partner. But Indian officials are pressing for steps to balance a growing trade deficit. During a visit to India, Russia’s First Deputy Prime Minister Denis Manturov welcomed the steady growth of bilateral trade, which has expanded fivefold over the last five years.
According to Manturov, trade turnover in the first eight months of 2024 increased by 9% compared to last year’s same period. Speaking at the India-Russia Business Forum in Mumbai alongside India’s External Affairs Minister S. Jaishankar, he drew attention to diversification of trade, which is now not only represented by energy and fertilizers but also by increasingly growing exports of food products, such as sunflower and soybean oil. From India, Russia imports industrial equipment, pharmaceuticals, and components.
“Our trade turnover testifies to stable positive dynamics, but we can achieve even more,” Manturov said, reflecting optimism about future economic ties.
Even though India and Russia reported bilateral trade to the tune of $66 billion in 2024, Jaishankar himself drew attention to a widening trade deficit. India’s trade deficit with Russia has ballooned to nearly $57 billion and has led to calls for urgent measures in this regard.
“The balance of trade is significantly one-sided,” Jaishankar said, pushing both sides to resolve regulatory hurdles, non-tariff restrictions and logistical challenges. “It is important these issues are addressed quickly for a more balanced relationship.”
Jaishankar also sought solutions to banking and payment-related issues, a contentious point as India faces sanctions on Russia and limited payment mechanisms for the country’s oil and gas imports.
Despite these challenges, both nations expressed confidence in achieving a trade turnover of $100 billion by 2030. Jaishankar called this target “more than realistic” given current trends.
Experts believe the burgeoning trade relationship stems from geopolitical shifts and India’s increasing energy needs. Russian oil and fertilizers have been central to India’s imports, but officials are now advocating for enhanced exports of Indian products like textiles, electronics, and machinery.
Russia reaffirmed it wants to strengthen ties, and the lead comes from Manturov: “We are ready to surmount challenges and ensure mutual benefits for both our economies.”
The removal of market barriers should form part of concerted efforts for collaboration between India and Russia. The move is key to the realization of deeper India-Russia economic relations in terms of parity between both nations in dealing with each other.
