In a significant move to strengthen economic ties, India and Russia have set a new bilateral trade target of US$100 billion by 2030. This decision was announced during bilateral talks between Indian Prime Minister Narendra Modi and Russian President Vladimir Putin. The announcement comes as part of the 22nd annual bilateral summit held in Moscow, where both leaders discussed various avenues to enhance cooperation.

Foreign Secretary Vinay Kwatra revealed the ambitious target, at a special briefing in Moscow at the end of talks stating, “The two leaders have set a new trade target of US$100 billion by 2030.” This target marks a substantial increase from the previous goal of US$30 billion by 2025. The rapid growth in trade between the two countries is evident, as bilateral trade reached an all-time high of US$65.70 billion in the financial year 2023-24.

Prime Minister Modi’s two-day official visit to Moscow primarily focused on economic engagement, said the foreign secretary. In response to a question, Kwatra emphasized that a major thrust of the discussion was on economic collaboration, particularly on projects that would boost manufacturing and self-reliance in India. He highlighted the importance of initiatives like the proposed Chennai-Vladivostok Eastern Corridor, which aims to enhance connectivity and trade between the two nations.

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“A significant component of it was also devoted to how the partnership between India and Russia can also give fillip to Make in India and other manufacturing partnerships that give fillip to Aatmanirbhar Bharat in India across a whole range of economic areas,” said the foreign secretary.

The bilateral talks also covered critical areas of economic cooperation that impact various sectors in both countries. One such area is the supply of fertilizers from Russia to India, which is crucial for Indian agriculture and directly affects crop production and farmers’ yields. The leaders recognized the importance of this trade in supporting India’s agricultural sector and ensuring food security.

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Eurasian Economic Union (EAEU)

Another key discussion point was the need to advance the India-Eurasian Economic Union Trade and Goods Agreement. This agreement aims to facilitate trade between India and the Eurasian Economic Union (EAEU), which includes Russia and other neighboring countries. “The two leaders also spoke about the need to move forward on the India-Eurasian Economic Union Trade and Goods Agreement. We have had one round of discussions between the two countries and it is expected that this will be expedited in months ahead,” Kwatra noted.

The strategic partnership between India and Russia has historically been robust, encompassing various sectors including defence, energy, and technology. This latest initiative to boost bilateral trade to US$100 billion reflects the evolving nature of their relationship, focusing more on economic and commercial interests.

During the summit, both leaders also explored ways to diversify their trade relations beyond traditional sectors. They discussed potential collaborations in emerging fields such as digital technologies, cybersecurity, and renewable energy. These discussions are expected to pave the way for new ventures and joint initiatives that align with the economic priorities of both countries.

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Connectivity

The Chennai-Vladivostok Eastern Corridor is one of the key projects that could significantly enhance connectivity between India and Russia. This proposed maritime route is intended to reduce the transportation time and costs for goods traded between the two nations, fostering greater economic integration. The corridor is expected to complement the International North-South Transport Corridor (INSTC), further strengthening trade links.