Russia has ambitious plans with partner India — ships, planes, trains on radar after trade zooms to new heights

Citing that the trade turnover between Russia and India has exceeded 35 billion USD, Moscow is keen on expanding its partnership with New Delhi in specific industries such as railway and heavy machinery, aircraft building, shipbuilding, metallurgy, and chemicals.

On the second and final day of his visit to the Indian capital on Tuesday, Russian Deputy Prime Minister and Minister of Trade and Industry, Denis Manturov held bilateral meetings with Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman.

External Affairs Minister S Jaishankar and the Russian Deputy PM also co-chaired the 24th session of the Inter-governmental Commission which is a mechanism for monitoring the bilateral progress of trade and economic cooperation between the two countries.

As reported by IndiaNarrative.com on Monday, Manturov also called on National Security Advisor (NSA) Ajit Doval to discuss a range of bilateral issues concerning the India-Russia Special and Privileged Strategic Partnership.

At the India-Russia Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), the Deputy Prime Minister of Russia spotlighted how relations between Russia and India continue progressively, developing in all directions, despite “negative external factors” since the start of Ukraine conflict.

Both sides discussed bilateral cooperation in the areas of trade, finance, industry, energy sector, including nuclear power, agriculture, transport, healthcare, education and culture.

“According to the last year results, the trade turnover between our countries increased by 2.6 times, exceeding 35 billion USD. We have completed ahead of schedule the task set by the leaders of our countries to reach the level of bilateral trade of 30 billion USD by 2025,” said Manturov.

The Ministry of External Affairs stated that the two sides reviewed the entire gamut of bilateral trade and economic relationship, and agreed to work together to unlock its full potential including through addressing the trade deficit and market access issues.

Manturov, in his meeting with Commerce and Industry Minister Piyush Goyal, discussed current issues and prospects for cooperation in industries like railway, aircraft building, shipbuilding, etc.

Earlier this month, IndiaNarrative.com reported on Transmashholding, a leading Russian company in railway engineering, getting ready to sign a supply agreement with Indian Railways in May to jointly manufacture 120 16-car Vande Bharat Express high-speed trains.

The Russian-Indian consortium of Transmashholding (TMH) and Rail Vikas Nigam Limited (RVNL), which functions as an extended arm of the Ministry of Railways, won the tender for the production, supply, and maintenance of 120 passenger electric trains (1920 cars) to India.

On Tuesday, Manturov invited Goyal and the Indian enterprises to take part in the international industrial exhibition INNOPROM in July 2023 in Yekaterinburg.

“The need to intensify the work on the preparation of a Free Trade Agreement between the EAEU and India to increase and diversify trade turnover was also noted,” said the Russian side.

Positive dynamics in India-Russia trade and shared priorities of deeper and wider bilateral commercial cooperation were accentuated during the Russian Deputy PM’s meeting with Finance Minister Nirmala Sitharaman.

“The necessary steps to ensure uninterrupted mutual settlements, primarily with the use of national currencies, were discussed. Mutual interest in concluding a Russian-Indian agreement on the encouragement and mutual protection of investment was noted,” said a statement from the Russian side.

The importance of connectivity initiatives, including the International North-South Transport Corridor (INSTC) as well as the Eastern Maritime Corridor (Chennai-Vladivostok Corridor) is one area that India has listed which would play a key role in expanding and diversifying the bilateral trade and economic cooperation.

“The Eastern Maritime Corridor, I think, fits in with our goal, what is called ‘Act East Policy’, as well as the Russian policy of having the Far East come in as an additional driver of the economy. So, I think there is a synergy there which is waiting to be tapped,” said EAM Jaishankar at India-Russia Business Dialogue on Monday.

Also Read: Are India and Russia negotiating Free Trade Agreement as economic ties prosper?