‘World moving towards ever greater multi-polarity,’ EAM Jaishankar says ‘Russia focused deeply on Asia’

Stressing the “deep friendship” between India and Russia, External Affairs Minister (EAM) S Jaishankar on Monday said that Russia has consciously “focused more deeply on Asia since 2022”, which has created “many more avenues of cooperation.”

EAM was speaking at the India-Russia Business Forum in Mumbai. He noted, “There is a larger international setting in which we should also place our cooperation. The world is moving towards ever greater multi-polarity and devising appropriate methods of cooperation is essential if we are to keep up. Moreover, Russia has consciously focused more deeply on Asia since 2022. This has created many more avenues of cooperation. That we have a long history of strong convergence and deep friendship allows us to make the best of both factors.”

Bilateral trade

According to an official release by the Ministry of External Affairs (MEA), “That the two economies are so complementary is also a key consideration. A partnership between an India that has an 8% growth rate for multiple decades ahead, and a Russia that is a key natural resources provider and a major technology leader, will serve both of them and the world well.”

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Jaishankar further remarked, “Keeping that in mind, let me highlight 10 significant developments that we need to take note of our bilateral trade is today at USD 66 billion. This makes the goal of reaching USD 100 billion by 2030 more than realistic. The balance of trade however needs urgent redressal since it is so one-sided. It is imperative that non-tariff barriers and regulatory impediments are speedily addressed for this to happen.”

He said that the India-Eurasian Economic Union trade in goods negotiations commenced in March this year. We need to vigorously take it forward. “The first ever bilateral Investment Forum took place in Moscow in April 2024. We also need to expedite negotiations on the Bilateral Investment Treaty,” he added.

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Jaishankar added, “Mutual settlement of trade in national currencies is of great importance, especially in the current circumstances. Special Rupee Vostro Accounts are right now an effective mechanism. However, even in the short run, a better trade balance with national currency settlements is the answer.”

Energy

“In energy domains such as oil, gas, coal or uranium, India will always be a major player in the international markets. This applies as well to the demand for fertilizers of various kinds. Constructing a mutually beneficial arrangement will help us both address the volatility and the uncertainty of our times. The emergence of a global workplace is also today an increasing reality. Demographic unevenness has created demand and supply imbalances across the world,” he further said.

Connectivity

Speaking on the connectivity initiatives, EAM said, “The three connectivity initiatives between us, as mentioned by the First DPM as well – INSTC, Chennai-Vladivostok Corridor and the Northern Maritime Route – all need continued attention, if we are to realize full potential.”

“A growing Russian appreciation of Make In India as a program to deepen business will certainly help to take forward our cooperation in many many domain,” he added.

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“The importance of non-economic domains, such as education and film as contributions to a larger societal but also an economic connect between us,” EAM said.

According to the MEA release, the India-Russia Inter-Governmental Commission will meet in Delhi on Tuesday to assess our bilateral cooperation.