India and Russia have set an annual trade target of $100 billion by 2030.

Moscow: India and Russia on Tuesday set a target of achieving annual trade of $100 billion (Rs 8.34 lakh crore) by 2030 and pledged to develop a robust bilateral payment settlement mechanism using national currencies.

The two sides signed a total of nine agreements aimed at strengthening broad cooperation in several areas, including the economy, following summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin.

Modi was on a two-day visit to Russia, his first visit to the country since the outbreak of war in Ukraine.

“The main topic of discussion was economic engagement. A significant element of the discussion was also devoted to how the India-Russia partnership can also give a boost to ‘Make in India’ and other manufacturing partnerships,” Foreign Minister Vinay Kwatra told a press conference.

Kwatra said Prime Minister Modi spoke about the need to broaden the overall trade basket and called for greater market access for Indian goods in Russia, both in the agricultural and industrial sectors.

“Both leaders also focused on important areas in the economic sphere that are related to the growth of various sectors in both countries, in particular, the supply of fertilizers from Russia to India, which has a direct link to crop production and crop yields of farmers in India,” he said.

“In terms of specific goals, both leaders set a new trade target of $100 billion by 2030,” Kwatra said.

The current value of bilateral trade is around $60 billion (Rs 5 lakh crore).

The two leaders also discussed the need to continue work on a trade and goods agreement between India and the Eurasian Economic Union.

“We have had one round of talks between the two countries and it is expected to be accelerated in the coming months,” Kwatra said.

The two sides also published a “Joint Statement of the Leaders on the Development of Strategic Areas of Economic Cooperation between Russia and India until 2030,” which outlined a plan for developing economic ties.

The document indicates the development of a bilateral payment settlement system using national currencies as a priority area.

The document also mentions the consistent introduction of digital financial instruments for mutual payment settlements.

Priority areas included the development of cooperation in key energy sectors, including nuclear power, oil refining and petrochemistry, as well as expanded forms of partnership in the field of energy infrastructure.

It places emphasis on facilitating mutual and international energy security, taking into account the prospects of global energy transformation.

The joint statement also stated that both sides agreed to continue cooperation aimed at promoting a bilateral settlement system using national currencies.

“The parties agreed to continue consultations on the interoperability of their financial messaging systems.”

“The importance of finding mutually acceptable solutions on insurance and reinsurance issues was stressed in order to facilitate further improvement of bilateral trade,” the statement said.

“With a view to eliminating non-tariff/tariff barriers to trade, including safeguard measures and administrative barriers, the leaders appreciated the initial meeting in March 2024, which marked the launch of full negotiations for a free trade agreement in goods between India and the Eurasian Economic Union,” the statement said.

The leaders also tasked relevant officials to explore the possibility of launching negotiations to sign a bilateral free trade agreement in services and investment.

India and Russia also stressed the importance of strong and comprehensive cooperation in the energy sector as an essential pillar of the strategic special and privileged partnership.

“In this context, the parties noted the particular importance of bilateral trade in energy resources and agreed to consider the possibility of concluding new long-term contracts,” the joint statement said.

“The parties appreciated the ongoing cooperation in the coal sector and agreed to explore the possibility of further increasing the supply of coking coal to India, as well as the opportunities for export of anthracite coal from Russia to India,” the statement said.