Amid Trump Tariffs, Jaishankar Urges Stronger India-Russia Trade

S Jaishankar urges Russian firms to enhance trade ties with India, citing economic growth and opportunities for collaboration amidst US tariffs. He highlights the importance of diversifying trade and investments for mutual benefit.

Amid the Trump administration imposing a 50% tariff on India for buying Russian oil, External Affairs Minister S Jaishankar has urged Moscow to deepen its trade relations with India.

Jaishankar has cited India's economic growth and initiatives like 'Make in India' as opportunities for Russian businesses to engage more actively with Indian counterparts.

He emphasised the need for reliable resources due to India's expanding economy, which has a GDP exceeding USD 4 trillion and is growing at 7%. He pointed out that assured supplies of essential products such as fertilisers, chemicals, and machinery are crucial. Additionally, India's burgeoning infrastructure presents business prospects for enterprises with proven track records.

"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," ANI quoted Jaishankar as saying.

"The 'Make in India' and other such initiatives have opened up new windows for foreign businesses. The modernisation and the urbanisation of India generate their own demands, flowing from shifts in consumption and lifestyle. Each of these dimensions represent an invitation for Russian companies to engage more intensively with their Indian counterparts. Our endeavour is to encourage them to rise to that challenge," he added.

Strengthening Economic Ties

The minister noted that while India and Russia have maintained one of the steadiest relationships among major nations, this hasn't automatically led to significant economic cooperation. He stressed the importance of diversifying and balancing trade between the two countries to sustain existing levels and achieve higher trade targets.

Jaishankar called for more "strenuous efforts" to diversify trade between India and Russia. Despite recent growth in trade volume, the trade basket remains limited, and the deficit has increased. He believes that enhancing economic cooperation is essential for reaching higher trade goals.

Encouraging Investments and Collaborations

The minister expressed India's readiness to explore investments, joint ventures, and other forms of collaboration with Russia. He stated that both nations can significantly contribute to each other's growth and development. The aim is to create conditions conducive to economic activities through government guidance.

"It is reasonably evident that there is much that India and Russia can do for each other in promoting growth and accelerating development," Jaishankar said. He added that a strong economic component is vital for an enduring strategic partnership between the two countries.

Free Trade Agreement Developments

India has signed Terms of Reference (ToR) for a Free Trade Agreement with the Eurasian Economic Union. Jaishankar believes this will make a significant difference once concluded. Discussions also included motivating joint ventures in key areas where demand exists and initiatives involving substantial investments.

He mentioned ongoing efforts in skilling and mobility endeavours, which are gaining momentum. The desire to improve connectivity through multiple options was also expressed during discussions.

The minister concluded by stating that businesses need to step forward confidently while ensuring close collaboration between government discussions and business planning. This approach aims to foster stronger economic ties between India and Russia amidst changing global trade dynamics.