India and Russia are discussing ways to enhance bilateral trade by adopting payments in their national currencies and reducing non-tariff barriers. The talks aim to facilitate rupee-ruble trade and address trade imbalances, particularly as petroleum dominates current transactions. With a significant trade deficit favoring Russia, both nations seek to diversify trade beyond oil and create a more balanced economic relationship.
India and Russia to Enhance Trade With Rupee-Ruble Payments
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India and Russia Explore Rupee-Ruble Trade to Boost Bilateral Trade
India and Russia are exploring ways to enhance bilateral trade by adopting mutual payments in their national currencies and reducing non-tariff barriers, Indian Commerce Secretary Sunil Barthwal revealed during a briefing in New Delhi on Wednesday.
The Commerce Secretary spoke about discussions held with Russian Economic Development Minister Maxim Reshetnikov and other key officials in July. Barthwal emphasized the importance of facilitating rupee-ruble trade and addressing the impact of non-tariff measures on trade between the two nations. Additionally, they discussed the need to diversify trade beyond petroleum products, a sector currently dominating their transactions. He told reporters:
We discussed a lot of issues to improve trade between India and Russia. We also discussed how to facilitate rupee-rouble trade, how non-tariff measures are impacting our trade and how they should be reduced.
Trade turnover between India and Russia currently stands at approximately $67 billion, with a significant imbalance in favor of Russia. According to Indian figures, India’s exports to Russia reached $4.3 billion for the financial year ending March 31, 2024, while imports, largely driven by Russian oil, amounted to $61.4 billion. The resulting trade deficit for India stands at $57.1 billion.
What do you think about India and Russia’s efforts to balance trade and reduce non-tariff barriers? Let us know in the comments section below.
