Jaishankar Calls For India-Russia Ties; Urges Russian Firms To Engage ‘Intensively’ Despite US Tariffs

External Affairs Minister S Jaishankar has urged Russian businesses to strengthen their ties with India, even as the US imposes a % tariff on Indian goods due to India's purchase of Russian oil. During the 26th Session of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation in Moscow, Jaishankar highlighted India's economic growth and initiatives like 'Make in India' as opportunities for foreign investment.

"An India with a GDP of USD 4 trillion plus growing at 7% for the foreseeable future has an obvious need for large resources from dependable sources. In some cases, it could be assured supplies of essential products, fertiliser, chemicals, and machinery, being good examples. Its rapidly growing infrastructure offers business openings to enterprises with an established track record in their own country," Jaishankar was quoted by news agency ANI as saying.

India-Russia Trade Relations

Jaishankar emphasised that despite a strong diplomatic relationship between India and Russia, economic cooperation hasn't reached its full potential. He noted that while trade volume has increased recently, so has the trade deficit. He called for more efforts to diversify and balance trade between the two nations.

"India and Russia have nurtured one of the steadiest relationships between major nations in current times is now widely recognised. However, that did not automatically translate into significant economic cooperation," Jaishakar said.

He further stated that both countries should work towards deeper collaboration to foster growth and development. This includes exploring investments, joint ventures, and other forms of partnership.

Opportunities for Collaboration

The minister pointed out that there is significant potential for mutual benefits through enhanced cooperation. He mentioned that governments aim to create favourable conditions for economic activities by providing guidance and support.

"Clearly much centres around trade but there is growing willingness to contemplate more investments, joint ventures and other forms of collaboration. First DPM Manturov and I are here amongst you to encourage those processes. We want to send a clear message that an enduring strategic partnership must have a strong and sustainable economic component." he said.

Free Trade Agreement Developments

Jaishankar also announced progress on the Free Trade Agreement (FTA) with the Eurasian Economic Union by signing Terms of Reference (ToR). He expressed optimism about its impact once concluded.

"We spoke about motivating joint ventures in key areas where the demand is already established. Some initiatives of significant investment levels were also spoken about. Our skilling and mobility endeavours have started to take off. The desire to improve connectivity is also expressed through multiple options," he said.

The minister stressed the importance of businesses taking proactive steps forward while ensuring alignment between governmental discussions and business plans.

"But in the final analysis, what we really need is for businesses to step forward confidently. Not just that, also ensure that there is a close collaboration between what Governments are discussing and businesses are planning," he added.

This push for increased trade with Russia follows the US's decision to impose an additional 25% tariff on Indian goods starting August 27, raising total duties to 50%. Despite this challenge, Jaishankar remains focused on strengthening India's economic ties with Russia.