Delhi and Moscow have set an ambitious goal – to increase bilateral trade to $100 billion within five years. Against this backdrop, both countries seek to eliminate trade barriers and demonstrate unity in resisting tariff pressure from Washington.
This is reported by Bloomberg, writes UNN.
Details
India and Russia have announced their intention to significantly expand economic cooperation, setting a target of $100 billion in annual trade within the next five years. This is almost 50% more than current volumes and is intended to be a strategic response to the increasingly complex relations of both countries with the United States.
Indian Foreign Minister Subrahmanyam Jaishankar, during his official three-day visit to Moscow, emphasized the need to "remove obstacles and non-tariff barriers" to achieve the set goal.
According to him, in a time of global instability, it is especially important to rely on "reliable and stable partners."
We are all acutely aware that we are meeting against the backdrop of a complex geopolitical situation. Our leaders continue to interact closely and regularly
Russia is currently India's fourth largest trading partner, and India itself ranks second in Moscow's foreign trade. The strengthening of economic ties is taking place against the backdrop of intensified cooperation between BRICS countries, which are increasingly facing US trade restrictions.
Jaishankar's current visit is seen as a preparatory stage for Vladimir Putin's trip to India, scheduled for the end of the year.
Meanwhile, Prime Minister Narendra Modi has already demonstrated his commitment to his Russian partner, calling him a "friend" after a recent conversation. At the same time, Delhi is seeking rapprochement with China – for the first time in seven years, Modi plans to meet with Xi Jinping in Beijing.
For its part, the US criticizes India for importing cheap Russian oil, seeing this as supporting the Kremlin in financing the war against Ukraine. President Donald Trump intensified pressure by imposing 25% tariffs on Indian goods and threatening to double them.
If such a scenario is implemented, about $85 billion of Indian exports to the US could lose competitiveness. Jaishankar, however, emphasized that New Delhi defends its right to buy energy at the lowest price, and discounted Russian oil helps the country curb domestic inflation.
He also called for more active trade diversification, the creation of joint ventures, and the elimination of technical barriers, particularly in payment mechanisms. Thus, India and Russia are forming a new economic axis of cooperation, which should not only compensate for losses from American restrictions but also change the balance of power in world trade.
Recall
Indian state oil refineries have resumed purchases of Russian Urals oil after a short break. This is happening despite criticism from American officials and threats of sanctions.
Russia expects India to remain a stable oil customer, offering discounts of about 5% off the market price. The US is increasing pressure on India over purchases of Russian oil, imposing tariffs and accusing it of supporting "Putin's war."