India-Russia Economic Cooperation until 2030

India and Russia have agreed on a joint "Programme for Economic Cooperation" aiming for a bilateral trade target of $100 billion by 2030. This plan focuses on expanding Indian exports by addressing non-tariff barriers and regulatory bottlenecks imposed by Moscow.

Key Elements of the Agreement

• Both nations emphasized the need to address tariff and non-tariff trade barriers.
• Efforts will be made to remove logistical bottlenecks and promote connectivity.
• Ensuring smooth payment mechanisms and addressing issues of insurance and reinsurance are prioritized.
• Regular interaction between businesses of both countries is encouraged to achieve the trade target.

Statements from Leaders

• Russian President: Highlighted a comprehensive roadmap to remove barriers to goods and capital flows, implement joint industrial projects, and enhance technology and investment collaboration.
• Indian Prime Minister: Emphasized the shared priority of elevating economic cooperation to new heights through the Economic Cooperation Programme until 2030, aiming for diversified, balanced, and sustainable trade and investment.

Bilateral Trade Growth

• The bilateral trade grew by 12% last year, reaching between $64 billion and $65 billion.
• Russia and India agreed to develop bilateral settlements through national currencies to ensure uninterrupted trade.

Focus Areas for Enhancing Indian Exports

• Target sectors include pharmaceuticals, agriculture, marine products, and textiles.
• Nearly two dozen banks have opened special rupee Vostro accounts to facilitate trade.

Strategic Agreements

• Both countries will continue negotiations on a free-trade agreement with the Eurasian Economic Union.
• Efforts are directed towards a mutually beneficial agreement on investment promotion and protection.

Challenges and Future Directions

• Without a modern rupee-rouble settlement system, Russia might remain a significant oil supplier but not a serious export market for India.
• Russian banks' exclusion from SWIFT presents a significant challenge, making deals slow, costly, and uncertain.
• Experts suggest a broader push for local-currency settlement to alleviate payment frictions.

Conclusion

The summit underscores the importance of strategic economic collaboration, addressing trade barriers, and enhancing sectors of mutual interest to achieve the ambitious trade target by 2030.