Union External Affairs Minister S. Jaishankar addressing an event in Mumbai, Sunday, Nov. 10, 2024.
| Photo Credit: PTI

Ahead of the 25th session of the India-Russia Inter-Governmental Commission meeting, External Affairs Minister S Jaishankar on Monday (November 11, 2024) said bilateral trade in national currencies is of “great importance”.

Also read: Russia, India agreed to go ahead with trade in national currency: Russian diplomat

Speaking at the beginning of the India-Russia Business Forum in Mumbai, Mr. Jaishankar said bilateral trade between the two countries is presently at $66 billion and declared that the figure will touch $100 billion by 2030. The senior Indian minister reminded of the current world conditions in which the mutual trade between India and Russia has surged ahead and reiterated that the world is moving towards multipolarity.

“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 iin the short run, a better trade balance with national currency settlements is the answer,” said the Minister.

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Mr. Jaishankar highlighted INSTC, Chennai-Vladivostok Corridor and Northern Maritime Route as the three connectivity initiatives that the two sides are working on.

He also pointed out that the signing of a bilateral deal between the customs authorities of India and Russia in May 2024 on Authorised Economic Operators has had a “big impact on smoothening the ease of doing business”.

The interaction between the high level teams from India and Russia is significant as they are meeting soon after nineteen Indian entities were placed under sanctions by the US Treasury Department for carrying on trade and exchanges with Russian entities. Mr. Jaishankar reiterated that the the two governments have provided “strong direction” to nurture Indo-Russia trade.

PM Modi was hosted in Moscow earlier this year for the annual India-Russia summit and thereafter he also visited Kazan for the BRICS summit hosted by Russa. Trade in bilateral currencies was a major theme at the BRICS summit in Kazan and the Kazan Declaration emphasized the need of conducting business in local currencies to safeguard national interests.

Apart from Mr. Jaishankar and his team, the meeting in Mumbai is being attended by First Deputy Prime Minister of Russia Denis Manturov who will lead the Russian delegation during Tuesday’s Inter-Governmental Commission which is an umbrella forum for discussion of trade, economic, scientific, technical and cultural cooperation between the two sides. India-Russia trade has grown manifold after the 2022 invasion of Ukraine by Russia when Moscow came under western sanctions prompting it to get closer to Asian powers like India and China. India has gone ahead with trade with Russia especially in energy and technology despite pressure from the U.S.

On November 12, at the initiative of the Business Council for Cooperation with India and the Synergy Corporation, New Delhi will host the opening of the Russian Business Centre in India. The Russian Business Centre is aimed at developing business ties between the two sides and “provide a platform for interaction between Russian and Indian business communities”, stated a press release issued by the Embassy of Russia. The event will be attended by Russian Ambassador to India Denis Alipov and Minister of the Moscow government and Head of the Department of External Economic and International Relations of the Moscow City Sergey Cherernin.