Moscow: External Affairs Minister S. Jaishankar on Friday stressed the need to urgently tackle the growing trade imbalance between India and Russia, even as bilateral trade has surged more than fivefold in the past four years.
Speaking at the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) alongside Russia’s First Deputy Prime Minister Denis Manturov, Jaishankar highlighted that India’s imports, largely driven by discounted Russian crude oil, had created a sharp deficit.
“Over the last four years, our bilateral trade in goods has increased more than five-fold from $3 billion in 2021 to $68 billion in 2024-25. However, the imbalance has widened from $6.6 billion to $58.9 billion — about nine times higher. We need to address that urgently,” Jaishankar said.
To bridge the gap, he suggested removal of tariff and non-tariff barriers, tackling logistical hurdles, and boosting connectivity through corridors such as the International North-South Transport Corridor (INSTC), the Northern Sea Route, and the Chennai–Vladivostok maritime link. He also pressed for an early conclusion of the India–Eurasian Economic Union Free Trade Agreement, for which terms of reference were finalised this week.
Jaishankar expressed confidence that such steps would help achieve the revised bilateral trade target of $100 billion by 2030. He further noted that both countries, despite global headwinds, had maintained regular high-level engagements.
The visit comes against the backdrop of fresh U.S. trade pressures. President Donald Trump has announced a 25% reciprocal tariff on Indian goods and an additional 25% levy on India’s imports of Russian oil, effectively imposing a 50% duty. Washington has repeatedly urged New Delhi to reduce its reliance on Russian crude, arguing that such purchases fund Moscow’s war in Ukraine.
Jaishankar is on a three-day visit to Russia, reaffirming the “Special and Privileged Strategic Partnership” between the two nations.
