Jaishankar, Manturov Direct Working Groups to Enhance Market Access, Aiming for $100 bn Trade Target by 2030
India and Russia have recently taken a significant step towards enhancing their bilateral trade ties by setting an ambitious target of $100 billion by the year 2030. To achieve this goal, the foreign ministers of both countries, Dr. S. Jaishankar and Mr. Denis Manturov have directed their respective working groups to focus on improving market access and promoting trade cooperation.
This significant decision was taken at the 22nd meeting of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IRIGC-TEC) held virtually on 25th August. It was co-chaired by the two ministers, who recognized the immense potential of their countries’ economic partnership and their strong political ties.
During the meeting, both sides acknowledged the impact of the COVID-19 pandemic on global trade and emphasized the need for quick recovery. In this context, they emphasized the importance of expanding and diversifying their trade basket to achieve sustainable and balanced growth. As both nations possess complementary strengths in various sectors, it opens up opportunities for mutually beneficial collaboration.
In this regard, the two working groups on trade and investment were directed to take necessary steps to ensure market access for Indian and Russian products, especially in areas such as agriculture, pharmaceuticals, and textiles. They were also instructed to identify and address barriers to trade, facilitate investments, and promote joint ventures between the two countries.
India and Russia have historically enjoyed a strong trade relationship, but the potential for further growth remains untapped. In the fiscal year 2020-2021, the bilateral trade between the two countries was recorded at around $10 billion, which is far below the potential. Therefore, the target of $100 billion by 2030 reflects the determination of both nations to deepen their economic ties and unlock new avenues for cooperation.
Moreover, the ministers also agreed to explore the possibility of enhancing trade in local currencies, which would reduce currency exchange costs and the dependence on the US dollar. This move would not only boost bilateral trade but also promote regional economic integration.
Apart from trade and investment, the two ministers also discussed ways to enhance cooperation in the fields of agriculture, energy, health, and pharmaceuticals. They also emphasized the potential of leveraging digital technologies to expand trade and business ties.
The meeting also witnessed the signing of a memorandum of understanding (MoU) between the Indian Chamber of Commerce and Industry and the Russian Chamber of Commerce and Industry, which will further strengthen bilateral trade ties by fostering better understanding and collaboration between the business communities of both nations.
Both sides also highlighted the importance of cultural and people-to-people ties in further cementing the strong bond between India and Russia. It was decided to celebrate the 75th anniversary of the establishment of diplomatic relations between the two countries in a grand manner by organizing a series of events throughout the year.
In addition to that, the ministers also discussed the progress of various ongoing projects in the fields of energy, infrastructure, defense, and space, and expressed satisfaction at the cooperation between the two countries in these areas.
Overall, the 22nd meeting of the IRIGC-TEC was a significant milestone in the journey of India-Russia bilateral relations. The direction given by the foreign ministers to their respective working groups to work towards enhancing market access and achieving the $100 billion trade target by 2030 sets the tone for a more robust and dynamic economic partnership between the two nations.
The meeting also demonstrated the strong political will and commitment of both countries to take their relationship to greater heights. As the world is facing unprecedented challenges, the strong partnership between India and Russia is a shining example of the resilience and dynamism of their long-standing friendship.
In conclusion, the meeting between Dr. S. Jaishankar and Mr. Denis Manturov has laid a solid foundation for further strengthening the economic partnership between India and Russia. With the shared vision of enhancing market access and achieving the ambitious trade target of $100 billion by 2030, the two nations are well on their way to taking their strategic partnership to new heights.
