Jaishankar seeks ways to balance India-Russia trade

External affairs minister S. Jaishankar on Monday called for “speedily addressing” non-tariff barriers and regulatory impediments to restore the “one-sided” balance of trade between India and Russia.

“Our (India-Russia) bilateral trade is today at $66 billion. This makes the goal of reaching $100 billion by 2030 more than realistic,” Jaishankar said at the India-Russia Business Forum in Mumbai.

The minister also called for mutual settlement of trade in national currencies.

“Special rupee vostro accounts are right now an effective mechanism. However, even in the short run, a better trade balance with national currency settlements is the answer,” Jaishankar said.

The signing of a bilateral agreement between the customs authorities of the two countries in May on authorized economic operators, has had a big impact on smoothening the ease of doing trade, he said.

Moreover, the three connectivity initiatives – International North-South Transport Corridor (INSTC), Chennai-Vladivostok Corridor and the Northern Maritime Route – “all need continued attention, if we are to realize full potential,” he added.

The INSTC connects India to Russia via Iran for faster trade, while the Chennai-Vladivostok Corridor links India’s east coast to Russia’s Far East for energy and resources. The Northern Maritime Route offers a shorter Arctic passage between Europe and Asia.

The India-Eurasian Economic Union trade in goods negotiations began in March this year, Jaishankar said, while calling for efforts to “vigorously take it forward.”

“A growing Russian appreciation of Make In India as a program to deepen business will certainly help to take forward our cooperation in many many domains,” Jaishankar said, adding, “… I flag to your attention, the importance of non-economic domains, such as education and film as contributions to a larger societal but also an economic connect between us.”