News Highlights:
- India and Russia agree to deepen trade and economic relations during India-Russia Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).
- The IRIGC-TEC meeting was co-chaired by the Deputy Prime Minister and Minister of Trade and Industry from Russia and External Affairs Minister S. Jaishankar.
India-Russia Economic Relations:
- Economic Relations:
- Enhancing trade and economic cooperation between India and Russia is a key priority for the political leadership of both the countries.
- India-Russia trade and connectivity lag behind those between China and Russia.
- Trade Value:
- The total annual bilateral trade between the two countries stood at USD 13,124.68 million in 2021-22 and USD 8,141.26 million in 2020-21.
- Pre-Covid, it was USD 10,110.68 million in 2019-20, USD 8,229.91 million in 2018-19, and USD 10,686.85 million in 2017-18.
- Russia has now become India’s seventh biggest trading partner — up from its 25th position last year.
- The US, China, UAE, Saudi Arabia, Iraq and Indonesia were the six countries which recorded higher volumes of trade with India during the first five months of 2022-23.
- India’s imports from Russia:
- Of the total USD 18,229.03, India’s imports from Russia accounted for USD 17,236.29 million.
- India’s exports to Russia:
- India’s exports to Moscow were only worth USD 992.73 million, leaving a negative trade balance of USD 16,243.56 million.
- Russia’s share in India’s total trade has increased to 3.54%, up from 1.27% in 2021-22. While Russia’s share in India’s total trade was 2.1% in 1997-98, it has hovered below 2% for the last 25 years.
Mechanisms for the development of economic cooperation:
- IRIGC-TEC:
- The IRIGC (India-Russia Intergovernmental Commission) is the main body that conducts affairs at the governmental level between both countries.
- IRIGC-TEC is the apex government-to-government (G2G) forum for bilateral economic cooperation.
- It is chaired by the External Affairs Minister from the Indian side and the Deputy Prime Minister of the Russian Federation.
- India-Russia Strategic Economic Dialogue (IRSED):
- India-Russia Strategic Economic Dialogue (IRSED) has been established for cooperation in the field of development of economic policy and to encourage regular interactions and cooperation between the two countries.
- Negotiations for FTA:
- India and Russia have entered “advanced negotiations” over a free trade agreement(FTA) that aims to build closer economic ties.
- India is contemplating an FTA/ CECA with the Eurasian Economic Union. India is keen to engage more closely with Russia and the CIS countries to further intensify our trade and economic cooperation with this region.
Significance of Russia for India:
- Balancing China:
- The Chinese aggression in the border areas of eastern Ladakh brought India-China relations to an inflexion point but also demonstrated that Russia can contribute to defusing tensions with China.
- Russia organised a trilateral meeting among the foreign ministers of Russia, India, and China following deadly clashes in the Galwan Valley in the disputed territory of Ladakh.
- Emerging New Sectors of Economic Engagement:
- Apart from traditional areas of cooperation such as weapons, hydrocarbons, nuclear energy, and diamonds, new sectors of economic engagement are likely to emerge — mining, agro-industrial, and high technology, including robotics, nanotech, and biotech.
- India’s footprint in the Russian Far East and the Arctic is set to expand. Connectivity projects may get a boost too.
- Combating Terrorism:
- India and Russia are working to close the Afghanistan gap and calling for early finalisation of the Comprehensive Convention on International Terrorism.
- Support At Multilateral Forums:
- Additionally, Russia supports India’s candidacy for permanent membership of a reformed United Nations Security Council and of the Nuclear Suppliers Group.
- Russia’s Military Exports:
- Russia has been one of the largest arms exporters to India.
- Russia’s share in India’s arms imports fell by over 50% in the last five years compared to the previous five years (2011–2015).
- In the last 20 years, India imported arms and weapons worth USD 35 billion from Russia, according to the Stockholm International Peace Research Institute, which tracks global arms trade.
Pic Courtesy: Daily Pioneer
Content source: The Hindu