External Affairs Minister S. Jaishankar said on Tuesday that India is confident of reaching USD 100 billion in annual bilateral trade with Russia well before the 2030 target, highlighting the growing relationship between the two countries holds larger global implications.

This development comes amid a remarkable fivefold increase in bilateral trade over the past five years, with a 9% growth recorded in just the first eight months of the current year. This ambitious proposal not only underscores the deepening economic cooperation between the two nations but also sets a target for their trade to reach a $100 billion milestone by 2030.

Russia's Commitment to a Free Trade Agreement with India

The Russian delegation at the meeting was headed by First Deputy Prime Minister Denis Manturov.  He co-chaired the 25th meeting of the India-Russia Intergovernmental Commission in New Delhi along with External Affairs Minister (EAM) S. Jaishankar.

He also drew attention to the importance of expanding cooperation between Indian and Russian banks, mentioning that the current share of settlements in national and alternative currencies has reached almost 90 per cent. "What is important is that this growth is accompanied by diversification of the structure of mutual trade. Along with traditional supplies of energy resources and mineral fertilizers, we have increased food exports, primarily sunflower and soybean oil," Manturov said at the meeting, according to a statement released by his office in Moscow.

Further expansion of the trade basket and reducing the trade imbalance will be part of the programme for economic cooperation till 2030, and Russia is strongly committed to the signing of an FTA between India and the Eurasian Economic Union, as well as a bilateral agreement on services and investments, Manturov said. 

Dr S Jaishankar's Remarks

During his opening remarks, Jaishankar emphasized the "trust and confidence" underpinning Indo-Russian relations, which have fostered complementary economic growth. He noted that while trade, currently estimated at $66 billion, has been impressive, achieving balance will require overcoming logistical challenges and resolving issues related to payment mechanisms.

There have been challenges to trade, especially in regard to payments and logistics. Perceptible progress has been made in that regard but there is still some work to be done," he said, in an apparent reference to problems created by Western sanctions on Russia.

Jaishankar's comments build on remarks he made earlier at the India-Russia Business Forum in Mumbai, where he underscored the need to address India's trade deficit with Russia, which has ballooned to nearly $57 billion due to India's large-scale imports of Russian crude oil since 2022.

Strategic Importance of the Agreement

India has become Russia's second-largest trading partner. Russian imports from India now include agricultural products, industrial equipment, components, and pharmaceuticals.

Russia remains a key strategic partner for India for both practical and ideological reasons. On the practical side, India benefits significantly from access to discounted Russian crude oil. This signifies a long-standing economic relationship.

The other area of practical cooperation is defence.

Russia accounts for over 50 per cent of India's in-service military platforms. India is also the largest recipient of Russian arms exports, including the S400 missile defence system. This partnership bolsters India's position in a rapidly evolving global order, while ensuring continued access to critical resources, technology, and military capabilities.