India & Russia: $100 Billion Trade Target By 2030! What This Mega Deal Means For YOU!

Author

Satyam Jha | Whalesbook News Team

Detailed Coverage:

India's Commerce Secretary Rajesh Agrawal met with Russia's Deputy Minister of Economic Development Vladimir Ilyichev in Moscow for crucial talks under the 26th India-Russia Working Group on Trade & Economic Cooperation.

Both sides reviewed the substantial growth in bilateral trade, which has already more than doubled the 2014 benchmark of $25 billion. They reaffirmed their ambitious shared objective of achieving $100 billion in bilateral trade by the year 2030.

A significant outcome was the finalization and signing of a forward-looking protocol aimed at enhancing trade and economic cooperation across various sectors. This agreement operates under the umbrella of the Inter-Governmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC).

Discussions focused on unlocking market access and included proposals for the expedited listing of Indian businesses and agricultural products, particularly marine items, under Russia's Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS). A clear pathway for pharmaceuticals, covering registration and regulatory reliance, was also discussed.

Potential areas for expanded cooperation identified include engineering goods, chemicals, plastics, electronics, pharmaceuticals, agriculture, leather, and textiles. India also highlighted its strengths in sectors like smartphones, motor vehicles, gems, jewellery, and leather products that can support Russia's trade diversification efforts.

In the services sector, India encouraged greater procurement of its IT, healthcare, education, and creative services by Russian entities, along with facilitating mobility for Indian professionals to address labour shortages.

India presented its Global Capability Centre (GCC) ecosystem, a substantial global hub, as a platform for Russian companies to enhance cybersecurity, design, analytics, and shared services, thereby strengthening supply chain resilience.

While Russia expressed interest in a Bilateral Investment Treaty (BIT), both nations agreed to explore practical payment solutions, especially for Medium, Small, and Micro Enterprises (MSMEs), to ease trade transactions.

Impact This development is expected to open new avenues for Indian exporters and boost trade volumes between the two nations. It can lead to increased business opportunities in sectors like engineering, pharmaceuticals, textiles, and IT services, potentially influencing the performance of companies engaged in these export markets. Impact Rating: 7/10

Difficult Terms Working Group: A committee or group formed to investigate or deal with a particular subject or issue, often representing different organizations or countries. Bilateral Trade: The exchange of goods and services between two countries. Inter-Governmental Commission (IRIGC): A formal body established by two or more governments to oversee and promote cooperation in various fields. FSVPS: Federal Service for Veterinary and Phytosanitary Surveillance, a Russian regulatory body overseeing animal and plant health products. Pharmaceuticals: Medicines or drugs used to treat or prevent illness. Global Capability Centre (GCC): An offshore or nearshore operational center established by a multinational company to manage its business processes, IT services, research, and development. Bilateral Investment Treaty (BIT): An agreement between two countries aimed at promoting and protecting private investment flowing between them. MSMEs: Micro, Small, and Medium Enterprises; businesses defined by their size based on factors like employee numbers, turnover, or investment.