India and Russia Set Ambitious $100 Billion Trade Goal by 2030: Exploring Strategic Economic Cooperation
India and Russia aim to boost trade to $100 billion by 2030, announced at their recent summit. Key areas include energy, trade, and digital economy. In 2023, trade reached $65.60 billion. Initiatives involve national currencies and new transport routes, strengthening their economic partnership.
India and Russia set a $100 billion trade goal by 2030
In a significant move, India and Russia have recently announced an ambitious goal to elevate their bilateral trade to $100 billion by the year 2030. India and Russia unveiled a proposal to strengthen their strategic economic cooperation during their 22nd annual summit in Moscow between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi. This significant action is being taken during a time when trade is rapidly expanding between the two nations. The two nations have set a lofty target of exchanging commodities valued at $100 billion by 2030. Let's delve deeper into this significant development and its implications for the two nations with this article.
Exploring Collaborative Trade Initiatives Between Russia and India
Nine major areas of cooperation were agreed upon by the two parties. This included trade, the settlement of trade disputes in national currencies, increasing cargo turnover through new routes like the North-South Transport Corridor, increasing trade in food, fertilizer, and agricultural products, improving cooperation in the energy sector, such as nuclear energy, promoting investments and shared initiatives across the digital economy, working together on the supply of pharmaceuticals and developing humanitarian cooperation. The leaders decided to pursue the goal of removing non-tariff trade barriers related to bilateral commerce between Russia and India and to keep talking about bilateral trade liberalization, including the potential creation of an EAEU-India Free Trade Area.
India-Russia Trade in recent years
The total trade between India and Russia accounted for $65.60 billion in 2023, with India exporting goods worth $4.09 billion to Russia and imports worth $61.60 billion from Russia. India's exports to Russia have grown at an annualized pace of 19.2% during the last five years while Russia's exports to India have grown at a 52.3% yearly rate. India's imports from Russia include essential commodities like oil and gas, while India's exports to Russia encompass various sectors such as pharmaceuticals, machinery, and textiles. The partnership between India and Russia in the trade sector signifies a robust collaboration that continues to evolve and contribute positively to the economic landscape of both countries.
India’s import-export trade with Russia
What does India Export to Russia?
India exported goods worth $4.09 billion to Russia in 2023. India’s top exports to Russia are nuclear reactors and machinery worth $580.91 million. India’s biggest exports to Russia in 2023 with their HS code classification include:
| No. | HS Code & Product | Value |
| 1 | Nuclear reactors and machinery (HS Code 84) | $580.91 million |
| 2. | Pharmaceutical products (HS Code 30) | $371.74 million |
| 3. | Iron and steel (HS Code 72) | $324.89 million |
| 4. | Organic chemicals (HS Code 29) | $324.89 million |
| 5. | Electrical machinery and equipment (HS Code 85) | $282.39 million |
| 6. | Inorganic chemicals (HS Code 28) | $208.90 million |
| 7. | Miscellaneous chemical products (HS Code 38) | $150.36 million |
| 8. | Fish, crustaceans, and other aquatic invertebrates (HS Code 03) | $149.93 million |
| 9. | Optical, measuring, medical, or surgical instruments (HS Code 90) | $125.27 million |
| 10. | Ceramic products (HS Code 69) | $116.37 million |
What does India Import from Russia?
India imports from Russia accounted for $61.60 billion in 2023. Mineral fuels and mineral oils are India’s biggest imports from Russia worth $54.35 billion in FY23. India’s top 10 imports from Russia in 2023 with their HS codes include:
| No. | HS Code & Product | Value |
| 1 | Mineral fuels and mineral oils (HS Code 27) | $54.35 billion |
| 2. | Fertilizers (HS Code 31) | $2.44 billion |
| 3. | Animal, vegetable, or microbial fats, oils, and prepared edible fats (HS Code 15) | $1.24 billion |
| 4. | Natural or cultured pearls, precious stones, and metals (HS Code 71) | $1.12 billion |
| 5. | Commodities not elsewhere specified (HS Code 99) | $921.48 million |
| 6. | Iron and steel (HS Code 72)) | $466.54 million |
| 7. | Paper and paperboard; articles of paper pulp (HS Code 48) | $150.61 million |
| 8. | Nuclear reactors and machinery (HS Code 84) | $131.44 million |
| 9. | Salt; sulfur; stone; plastering materials, lime, and cement (HS Code 25) | $107.89 million |
| 10. | Inorganic chemicals (HS Code 28) | $98.56 million |
Growth in Commerce and Investments
As mentioned earlier, a total of Nine Memorandums of Understanding (MoUs), each with a distinct theme, were signed by the leaders. The agreement to increase trade and cooperative economic ventures in Russia's Far East, which was considered a crucial region due to its abundance of resources, was one of the most significant. Additionally, the agreements seek to maximize prospects by constructing the Vladivostok-Chennai route, accelerating the International North-South Transport route's (INSTC) integration, and optimizing the Northern Sea Route.
Integration of Technology and Finance
Economic cooperation includes the usage of national currencies in a two-way payment system and the adoption of digital financial assets. This can help in mitigating the impact of Russia's exit from SWIFT.. As a participant in this strategic financial union, Russia and India also recognize each other's RuPay and MiR card systems. This facilitates and expedites money transfers between the two nations.
Collaboration of Energy and Resources
The agreements demonstrate that nations are collaborating more closely in critical energy domains, like nuclear energy. There was also discussion about expanding the flow of anthracite coal and coking from Russia to India. This would satisfy industry demands and enhance India's energy security.
Emphasize the Arctic and Eurasian Connections
Russian and Indian leaders have decided to help in constructing and opening up maritime lanes through the Northern Sea Route in the Arctic. The goal of this is to boost trade and stabilize Eurasia's transportation networks. Reliable supply and demand networks are being established throughout the region as part of the cooperation. Experts view this as a potential counterbalance to Chinese initiatives in Eurasia. The necessity to develop the Trade and Goods Agreement between India and the Eurasian Economic Union became another important topic of debate. The reason for this agreement is to promote trade between Russia and nearby international locations in addition to India and the Eurasian Economic Union (EAEU). The necessity of advancing the India-Eurasian Economic Union Trade and Goods Agreement was an important topic discussed by the 2 leaders.
Bottom Line
To conclude, the assertion of a $100 billion trade aim by 2030 marks a good-sized milestone in the India-Russia partnership. By setting bold objectives and specializing in key regions of cooperation, both nations are paving the way for a better and more dynamic monetary relationship. With strategic making plans and concerted efforts, India and Russia can attain their trade goal and take their partnership to new heights.
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