In the wake of the US’s implementation of a 50% tariff on Indian imports, External Affairs Minister S Jaishankar has called for a substantial increase in trade between India and Russia. He encouraged Russian businesses to intensify their collaboration with Indian companies, highlighting India’s fast-growing economy and initiatives like ‘Make in India’ as avenues for foreign investment. According to Jaishankar, these conditions provide significant opportunities for Russian businesses to expand their engagement.
Jaishankar pointed out that India’s economy, exceeding USD 4 trillion and growing at 7% annually, demands a steady supply of essential resources like fertilizers, chemicals, and machinery. He stated that India’s expanding infrastructure offers significant opportunities for businesses with a solid domestic background. Programs such as ‘Make in India’ have also created new options for foreign enterprises. according to the janta post .
India’s modernization and urbanization are generating new demands due to evolving consumption habits. Jaishankar believes that these trends represent an invitation for Russian businesses to deepen their engagement with their Indian counterparts. He urged them to take advantage of this opportunity.
Jaishankar noted the historically stable relationship between India and Russia, while emphasizing the necessity of diversifying and balancing trade between the two nations. Although the relationship has been consistent, full economic cooperation has not been realized, with both trade volumes and the trade deficit remaining limited. He recommended that more aggressive measures are required to meet higher trade objectives and maintain current levels.
Jaishankar advocated for greater cooperation to foster growth and expedite development, and emphasized India’s openness to investments, joint ventures, and other forms of collaboration. He highlighted the mutual advantages that can be gained from promoting growth and accelerating development, with governments providing guidance and creating the environment for economic activity. The concentration is on commerce, along with investments and joint ventures in high-demand industries.
He also mentioned the signing of the Terms of Reference (ToR) for the India-Eurasian Economic Union FTA, which is predicted to have a beneficial effect on commerce. Discussions have focused on promoting joint ventures in areas where demand is established. Other large-scale investment initiatives have also been discussed, including projects in skill development, mobility, and connectivity. Jaishankar concluded by encouraging businesses to move forward with confidence, underscoring the significance of close collaboration between government and business.
Jaishankar’s push for increased trade with Russia comes as the US has imposed a 25 percent ad valorem duty on Indian goods, with an additional 25 percent tariff to take effect from August 27, raising the total duty to 50 percent.