As the United States implements a 50% tariff on Indian imports, External Affairs Minister S Jaishankar is urging for expanded trade relations between India and Russia. He encouraged Russian businesses to increase their interaction with Indian companies, citing India’s expanding economy and the ‘Make in India’ program as catalysts for foreign investment. According to Jaishankar, these developments provide substantial opportunities for Russian businesses to increase their engagement with India.
Jaishankar pointed out that India’s growing economy, with a GDP exceeding USD 4 trillion and a projected 7% growth rate, has a significant demand for resources from reliable sources, including essential goods like fertilizers, chemicals, and machinery. He highlighted the business opportunities available for foreign companies due to India’s rapidly growing infrastructure. He added that the ‘Make in India’ initiative and other such programs have opened up new avenues for international enterprises.
The modernization and urbanization of India are generating new demands, driven by changes in consumer behavior and lifestyles. Jaishankar believes that these aspects represent an invitation for Russian companies to strengthen their engagement with Indian counterparts. He urged them to seize the opportunity.
Jaishankar underscored the historically stable relationship between India and Russia, but he emphasized the necessity for more concerted efforts to diversify and balance trade between the two nations. He observed that the strong relationship has not been fully reflected in economic cooperation, as both the trade volume and the trade deficit have been limited. He argued that more vigorous efforts are essential to achieve higher trade targets and to sustain existing trade levels.
Jaishankar also called for deeper cooperation to stimulate growth and accelerate development. India is prepared to consider greater investments, joint ventures, and other collaborative initiatives. He emphasized the strong potential for mutual benefit between India and Russia, with governments providing guidance and fostering economic activity. The focus is on trade, coupled with investments and joint ventures in high-demand sectors.
Jaishankar highlighted the recent signing of Terms of Reference (ToR) for the India-Eurasian Economic Union Free Trade Agreement. The agreement is anticipated to facilitate trade. He mentioned additional discussions about ventures in key areas. Efforts to improve skill development, mobility, and connectivity are also in progress. Jaishankar concluded that businesses must proceed with confidence, emphasizing close collaboration between governments and businesses in their planning and discussions.
Jaishankar’s call for expanded trade with Russia comes in response to the US imposing significant tariffs on Indian goods. These include a 25 percent ad valorem duty and an additional 25 percent tariff from August 27, totaling a 50 percent duty.