India, Russia aim to increase bilateral trade to over $100 billion by 2030

India and Russia have pledged to increase bilateral trade to over $100 billion by 2030 through increased investment, use of national currencies for trade settlements and expanded cooperation in various sectors, including energy, agriculture and infrastructure.

In a joint statement following the 22nd annual bilateral summit between Russian President Vladimir Putin and Prime Minister Narendra Modi in Moscow, both sides reiterated their commitment to strengthening the special and privileged strategic partnership, aiming to intensify bilateral interactions by promoting trade and economic cooperation between Russia and India.

The summit identified nine key areas of cooperation, including:

>> Trade liberalization and elimination of non-tariff barriers, including discussions on the creation of an EAEU-India free trade area.

>> Developing a bilateral settlement system using national currencies, enabling transactions such as India’s purchase of crude oil to be made in Indian rupees, which could then be used by Russia to import from India, with the possibility of reciprocal use of Russian rubles.

>> Expanding cargo turnover through new transport routes such as the North-South International Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Sea Line. The agreement includes optimizing customs procedures using smart digital systems for smoother flow of goods.

>> Increased volume of bilateral trade in agricultural products, food and fertilizers, as well as ongoing dialogues to address veterinary, sanitary and phytosanitary constraints.

>> Cooperation in key energy sectors, including nuclear power, oil refining and petrochemicals, with particular emphasis on energy infrastructure, technology and international energy security in the face of the global energy transformation.

>> Strengthening interaction in infrastructure development, transport engineering, automobile manufacturing, shipbuilding, space and other industrial sectors. The agreement facilitates market entry for Indian and Russian companies through subsidiaries and industrial clusters.

>>Promoting investments and joint projects in the digital economy, science, research and high technology sectors, including the possibility of creating new joint ventures under favourable tax regimes.

>> Systematic cooperation in the field of medicines and advanced medical equipment, exploring the possibility of establishing Indian medical facilities in Russia and mutual recruitment of qualified medical personnel, while strengthening the coordination of medical and biological security.

>> Expanding humanitarian cooperation, including education, science, technology, culture, tourism, sports, health and other areas.

President Vladimir Putin and Prime Minister Narendra Modi have tasked the Russia-India Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation to set priorities and assess progress in these areas at an upcoming meeting.

Prime Minister Modi was ceremonially awarded Russia’s highest civilian honour, the Order of St. Andrew the Apostle the First-Called. This prestigious distinction recognises Prime Minister Modi’s significant role in promoting the privileged strategic partnership between Russia and India, as well as strengthening friendly relations between the two nations.