India, Russia Aim for $100 Billion Trade by 2030 with Energy, Agriculture Focus

India and Russia have committed to enhancing bilateral trade to over USD 100 billion by 2030. This agreement was reached during the 22nd Annual Bilateral Summit between Russian President Vladimir Putin and Prime Minister Narendra Modi in Moscow. The two nations aim to achieve this by boosting investments, using national currencies for trade, and increasing cooperation across various sectors, including energy, agriculture, and infrastructure.

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The joint statement highlighted nine key areas of cooperation. These include trade settlement using national currencies, increased cargo turnover through new routes like the North-South Transport Corridor, and raising trade volumes in agricultural products, food, and fertilisers. The leaders also agreed to deepen cooperation in the energy sector, including nuclear energy, and strengthen infrastructure development.

Trade and Economic Cooperation

Both sides are committed to eliminating non-tariff trade barriers and continuing dialogue on liberalising bilateral trade. They are exploring the possibility of establishing the EAEU-India Free Trade Area. This is aimed at achieving a mutually agreed trade volume of more than USD 100 billion by 2030. The agreement also includes increased supplies of goods from India to balance bilateral trade.

The development of a bilateral settlement system using national currencies was another key point. This means that purchases by India from Russia, such as crude oil, can be paid in Indian rupees. Russia can then use these rupees to settle payments for imports from India. A similar arrangement using Russian rubles is also possible.

Infrastructure and Transport

The leaders agreed to increase cargo turnover with India through new routes like the North-South International Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Sea Line. They also agreed on optimising customs procedures through intelligent digital systems for barrier-free movement of goods.

In terms of infrastructure development, both nations aim to strengthen interaction in fields such as transport engineering, automobile production, shipbuilding, space, and other industrial sectors. They also plan to facilitate the entry of Indian and Russian companies into each other's markets by creating subsidiaries and industrial clusters.

Energy Sector Collaboration

The agreement includes developing cooperation in key energy sectors like nuclear energy, oil refining, and petrochemicals. Expanded forms of cooperation in energy infrastructure, technologies, and equipment were also part of the deal. Both sides aim to facilitate mutual and international energy security while considering global energy transition prospects.

Digital Economy and Investments

Promotion of investments and joint projects across various sectors of the digital economy was emphasised. This includes science and research collaborations, educational exchanges, and internships for employees of high-tech companies. They also agreed on creating new joint subsidiary companies with favourable fiscal regimes.

Healthcare and Medical Cooperation

Systematic cooperation in developing and supplying medicines and advanced medical equipment was another focus area. The agreement includes studying the possibility of opening branches of Indian medical institutions in Russia and recruiting qualified medical personnel. Strengthening coordination in medical and biological safety was also agreed upon.

Humanitarian Cooperation

Both nations are keen on developing humanitarian cooperation by expanding interaction in education, science and technology, culture, tourism, sports, healthcare, and other areas. The President of Russia and the Prime Minister of India instructed the Russian-Indian Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation to study these priority areas further.

The leaders' commitment to these initiatives aims to give additional impetus to deepening bilateral interaction by promoting Russia-India trade and economic cooperation.