Moscow to boost India sourcing, tariff & regulatory hurdles to ease
NEW DELHI: Russian President Vladimir V Putin confirmed that, to narrow the massive trade deficit with India, Russian businesses will ramp up the supply of Indian goods, and both governments have agreed to work on reducing challenges created by tariff and non-tariff barriers. Meeting in New Delhi on Friday at the 23rd India-Russia Summit, the two countries, along with several delegates from both sides, set an ambitious goal of reaching $100 billion in trade by 2030, or earlier. Given the significant trade deficit of Russia, Russian businesses and companies are ready to manifold increase the supply from India of goods and services, said Putin during his address at the summit. India has repeatedly run into non-tariff hurdleswhether related to certification, payments, or billingwhen exporting to Russia. Over the past five years, Russias exports to India have expanded nearly twelvefold, while Indian exports to Russia have risen by only about 84% in the same period. As a result, Indias trade deficit with Russia has grown almost twenty times, reaching nearly $60 billion in FY 2024-25. To strengthen economic ties, the Russian President assured that, It will only be logical if our approach can integrate a greater supply of Indian products to Russia. Prime Minister Narendra Modi echoed the same view, noting that Indian exporters are ready to send high-quality Indian marine and dairy products to Russia. He also expressed optimism that India and Russia could meet their trade target sooner than planned. Modi reaffirmed that both sides are actively working toward an early conclusion of the Free Trade Agreement with the Eurasian Economic Union. The two countries also plan to begin work on several transportation projects, including one using the Northern Sea Route. Modi said the route will help in reducing the transit time and do better cost cutting, and more markets will open for the businesses. He also pushed for a virtual trade corridor to speed up customs clearance, reduce paperwork, and make cargo movement more seamless. At the Russia-India Business Summit, Maxim Oreshkin, Deputy Chief of Staff of the Presidential Executive Office of the Russian Federation, identified six areas where Indian exports can significantly grow: consumer goods, food and agricultural products, generic medicines and pharmaceuticals, telecom equipment, labour services, and machine parts.
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