India & Russia address ongoing trade deficit and market access

New Delhi: The Indian and Russian governments addressed the ongoing trade deficit and market access issues due to the war in Ukraine during the 24th session of the Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), the Centre informed on Tuesday.

The Deputy Prime Minister of the Russian Federation and Minister of Trade and Industry, Denis Manturov, the co-chair with External Affairs Minister S Jaishankar of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), commenced his two-day visit to New Delhi on Monday. He said that they are keen to import manufacturing equipment including machinery from India to replace the West. The Inter-governmental Commission is a mechanism for monitoring the bilateral progress of trade and economic cooperation between the two countries.

A communiqué mentioned: “The 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.”

Reportedly, Russia was keen to review defence cooperation between the two countries which has seen issues related to deliveries and payments due to the war in Ukraine. The IGC also discussed India’s plans for Russia’s strategy in the Indo-Pacific region. On Monday, Manturov mentioned, while speaking to the media persons here on the sidelines of the ‘India-Russia Business Dialogue’ organised by the Federation of Indian Chambers of Commerce and Industry: “Payments is one of the issues. The lack of imports from India is not enough to use the rupees. We need to increase Indian imports so we have balance.”

He was accompanied by senior representatives from several Russian ministries.

Also, the team includes leading names from state-owned companies like Alexander Mikheev, Director General of Rosoboronexport, Russia’s top geological exploration company etc.

Further, the Russian Deputy Prime Minister also held bilateral meetings with Commerce and Industry Minister Piyush Goyal, Finance Minister Nirmala Sitharaman and National Security Advisor Ajit Doval. Manturov discussed a range of issues relating to the India-Russia strategic partnership with Doval during the first day of his visit to the national capital.

However, experts say that his visit to New Delhi comes in the backdrop of renewed intensity in India-Russia trade ties, especially New Delhi’s procurement of an increasing volume of discounted crude oil from that country.

The External Affairs Ministry said: “The visit is in continuation of the regular high-level dialogue between the two Sides. EAM last visited Russia in November 2022.”