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India-Russia trade reached $68 billion in 2024-25, but a major imbalance emerged. S Jaishankar stressed addressing this at the 26th IRIGC-TEC session in Moscow.
External Affairs Minister S Jaishankar during the 26th Session of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural cooperation, in Moscow. (IMAGE: PTI)
External Affairs Minister S Jaishankar on Wednesday said that India-Russia bilateral trade has grown rapidly over the last four years, but a major trade imbalance has accompanied this growth, in his opening remarks at the 26th session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) in Moscow.
“Over the last four years, Excellency, our bilateral trade in goods has increased, as you have noted, more than five-fold from USD 13 billion in 2021 to USD 68 billion in 2024-25 and it continues to grow,” Jaishankar said. “However, a major trade imbalance has accompanied the growth; it has increased from USD 6.6 billion to USD 58.9 billion which is about nine times. So we need to address that urgently.”
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He outlined the key agenda for the session, saying, “Addressing tariff and non-tariff trade barriers, removing bottlenecks in logistics, promoting connectivity through the International North-South Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Corridor, effecting payment mechanisms smoothly, timely finalization and execution of the Programme of Economic Cooperation till 2030, the early conclusion of the India-Eurasian Economic Union FTA, whose terms of reference were finalised today, and regular interaction between the businesses of the two countries – these are among the key elements.”
Jaishankar also stressed the continuing commitment of both nations’ leaders, noting, “Our leaders remain closely and regularly engaged. They provide us wise and practical guidance to our Special and Privileged Strategic Partnership. They had two ‘in person’ meetings last year and are personally committed to further advancing our strategic partnership.”
Prime Minister Narendra Modi visited Moscow for the 22nd Annual India-Russia Summit in July. This was his first visit to Russia in five years. He and President Putin met on the sidelines of the BRICS Summit in Kazan, Russia in October.
Russian President Putin is expected to visit India later this year.
The remarks come amid a complex geopolitical backdrop, with the current US administration under Donald Trump imposing tariffs on Indian goods in response to India’s ongoing purchase of Russian crude oil.
IRIGC-TEC stands for the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation. This bilateral forum facilitates high-level dialogue between the governments of India and Russia, aiming to enhance cooperation across various sectors, including trade, energy, defense and cultural exchange.
Why The Imbalance
The disparity in trade between India and Russia has been a topic of concern. In the fiscal year 2024–25, bilateral trade reached a record high of $68.7 billion. However, India’s exports to Russia were significantly lower, amounting to only $4.88 billion, resulting in a trade imbalance of approximately $60 billion. This imbalance is primarily due to India’s substantial imports of Russian crude oil, which now constitute about 35% of India’s total oil imports.
To address this imbalance, both nations are exploring measures to boost Indian exports and diversify trade. These include enhancing connectivity through initiatives like the International North-South Transport Corridor and the Chennai-Vladivostok Corridor, improving payment mechanisms and facilitating greater interaction between businesses.
About the Author
Shankhyaneel Sarkar is a senior subeditor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over five years of experience during which he has covered sev…Read More
Shankhyaneel Sarkar is a senior subeditor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over five years of experience during which he has covered sev… Read More
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