India, Russia Aim for $100 Billion Trade by 2030, Sign Key Energy Pact
India and Russia have set an ambitious target to boost bilateral trade to $100 billion by 2030, as announced by External Affairs Minister S Jaishankar following the 22nd Annual Summit in Moscow.
Key Takeaways
- Ambitious Target: India-Russia trade aims to hit $100 billion by 2030.
- Current Surge: Trade already crossed $65 billion in FY 2023-24, driven by crude oil imports.
- New Agreements: Pacts signed in energy, agriculture, infrastructure, defence, space, and nuclear sectors.
- Payment Mechanism: Both nations to explore using national currencies for settlements amid sanctions.
Energy and Economic Partnership Strengthens
The summit, featuring Prime Minister Narendra Modi and President Vladimir Putin, resulted in a new agreement to enhance trade in energy, agriculture, and infrastructure. A central component is a plan to increase supplies of Russian crude oil to India.
India has become a major buyer of discounted Russian oil following the Ukraine war, a key factor behind the bilateral trade surge to over $65 billion last financial year.
Navigating Challenges and Expanding Cooperation
Minister Jaishankar acknowledged hurdles, including ensuring a sustainable trade balance and facilitating smoother financial transactions due to Western sanctions on Russia. Both sides agreed to actively explore using the rupee and rouble for payments.
Prime Minister Modi underscored the relationship’s foundation of “mutual trust and benefit,” stating, “Our partnership with Russia remains strong and will continue to grow in areas of energy, security, and connectivity.”
Strategic Sectors in Focus
The leaders also advanced cooperation in strategic sectors like defence, space, and nuclear energy, with several agreements finalized. This summit was President Putin’s first visit to India since the onset of the Ukraine conflict.
