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The growing imbalance in India-Russia trade, tilted heavily in Russia’s favour, is likely to be a priority area of discussion between Prime Minister Narendra Modi and Russian President Vladimir Putin in Moscow next week, Foreign Secretary Vinay Kwatra has indicated.
Modi will be in Russia on July 8-9 for the 22nd India-Russia summit, where a wide range of issues such as defence, trade linkages, culture, education, civil nuclear cooperation and people-to-people contacts, will be on the agenda, Kwatra said.
“In 2023-24, India’s exports to Russia were at $4 billion while Indian imports were close to $60 billion. Trade remains in imbalance which is a matter of priority in our discussions with the Russian side,” the Foreign Secretary said at a press briefing on Friday on Modi’s visit to Moscow.
When asked how the trade imbalance could be addressed, Kwatra said that attempts have to be made to increase exports from India in all sectors, whether agriculture, manufacturing pharmaceuticals or services. “We will try that exports from India should increase as fast as possible, so that the the trade imbalance can be rectified fast,” he said.
India’s imports from Russia have been primarily oil, valued at $ 54.5 billion in 2023-24, as it is offered by the country at a discount.
G7 trade sanctions
Responding to a question on the G7 countries economic sanctions targeting trade with Russia, Kwatra said that India has been in talks with the group on the matter. “We have been in very regular touch with G7, essentially to protect and progress our national interests and our national needs when it comes to our economic and political interests–whether it relates to diamonds or other sectors of industry and economy.”
The threat of third country sanctions has been acting as an impediment to growth of Indian exports to Russia, especially of items such as computers, electronics and telecom equipment, according to industry and government officials.
US Ambassador to India, Eric Garcetti, recently said that any Indian company that violated global sanctions against Russia would have to be aware of the consequences they face when they were trying to do business with countries in Europe, America and their global allies around the world. He further said that he hoped that India would help identify those companies that are fuelling the Russian war machine (against Ukraine).
On India-Russia defence cooperation, Kwatra said it was a very important segment of the privileged strategic partnership. “Various elements of it, whether it relates to co-production opportunities between India and Russia, whether it relates to supply of spare parts for existing Russian platforms in India, whether it relates to other equipment that might be involved…those could potentially come up for discussion between the two leaders,” he said.
After his Russia visit, Modi will travel to Austria, which will be the first visit by an Indian Prime Minister to that country in 41 years.
The Indian PM is scheduled to call on Austria’s President, Alexander Van der Bellen and also hold talks with Austrian Chancellor Karl Nehammer.
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