India, Russia fast-track investment treaty as they target $100 billion trade by 2030
Commerce and Industry Minister Piyush Goyal discussed the treaty and ways to deepen economic ties with Russia’s Industry and Trade Minister Anton Alikhanov during a meeting in New Delhi.
The talks covered bilateral trade, industrial cooperation, expanding the range of goods traded between the two countries and strengthening supply chains.
India and Russia have set a target of taking bilateral trade to $100 billion by 2030, from around $60 billion currently, while aiming for $50 billion in two-way investment.
Goyal said reaching the trade target would require adding about $40 billion of annual trade over the next four years, implying double-digit growth each year. He said the relatively low level of non-energy trade leaves considerable room for expansion.
India seeks wider access for its exports
India is pushing Russia to ease non-tariff barriers affecting Indian electronics, electrical goods and automobiles as New Delhi seeks to expand shipments of pharmaceuticals, chemicals, engineering goods, machinery, vehicles, agricultural products and marine goods.
The push comes against the backdrop of a trade imbalance of more than $50 billion, with crude oil accounting for about 80% of Russia’s exports to India.
Goyal said Indian farmers, food processors and small businesses are already seeing stronger demand in Russia, pointing to recent growth in several export categories.
Exports of meat and edible meat products more than doubled to $97 million from $36 million, while aquatic product exports rose 30% to $159 million from $123 million, he said. Exports of edible vegetables increased 40% to $54 million from $38 million, while shipments from the milling industry nearly doubled.
The government wants such growth to spread to a wider range of Indian products rather than leaving bilateral trade heavily dependent on energy imports from Russia.
India seeks more investment from Russia
The India-Russia Priority Investment Projects Mechanism is currently tracking 40 active projects spanning advanced manufacturing, energy, mining and railways, Goyal said.
He called for greater opportunities for Indian companies to invest in Russia, particularly in pharmaceuticals, information technology, artificial intelligence, services, engineering and railways.
The proposed investment treaty is expected to support that effort by providing investors with clearer legal protections and greater certainty when making cross-border investment decisions.
Trade talks also face barriers
India is also negotiating a trade agreement with the Russia-led Eurasian Economic Union, or EAEU, although several issues remain to be resolved.
Government sources have previously said India is looking to focus the negotiations on products where both sides see scope for higher trade while addressing sensitive areas and non-tariff barriers.
India has flagged more than 65 non-tariff barriers affecting its marine exports to the bloc. Pharma companies face additional hurdles, including registration requirements, clinical trials, market access and price registration.
India has also been seeking to reduce regulatory overlap between Russian, EAEU and European rules, including requirements governing product labelling in Russian.
Because the EAEU is a customs union, India has also considered pursuing a separate agreement covering services with Russia, according to government sources.
The wider trade negotiations are expected to cover areas including customs procedures, e-commerce, intellectual property rights, sanitary and phytosanitary measures, tariffs and technical regulations.
India’s immediate challenge is to turn the strong energy trade relationship with Russia into a broader economic partnership spanning more goods, services and investment.
Also Read: Premier Energies expands beyond solar with 12 GWh battery storage plant in Telangana
Source: www.cnbctv18.com