Need to boost trade in national currencies, says Foreign Minister Jaishankar

Committed to take bilateral trade with Russia to $100 billion by 2030: EAM Jaishankar

External Affairs Minister S Jaishankar reiterated commitment to take bilateral trade with Russia to $100 billion by 2030, and emphasised that mutual settlement of trade in national currencies is of great importance.

Minister Jaishankar was speaking at the India-Russia Business Forum in Mumbai on November 11, where Russia's First Deputy Prime Minister Denis Manturov was also present.

"The Special Rupee Vostro Accounts are an effective mechanism, however, even in the short run, a better trade balance with national currency settlement is obviously the answer," Jaishankar said.

The bilateral trade currently stands at $66 billion and the goal of $100 billion is 'more than realistic', the minister added.

Jaishankar also made a case for an arrangement for supply of fertilizers in such a way it addresses both the "volatility and the uncertainty of our times". He said, India will be a major player in the global markets when it comes to the energy and fertilizer domain.

Talking about the global workplace, Minister Jaishankar said India and Russia can be partners in this regard, to address the "demographic unevenness" which has created demand and supply imbalances across the world. "It would require a focused initiative, that customises human resources in India for the Russian market, that is best done with active participation of businesses," he said.

Russia's recent focus on Asia has created more avenues for cooperation, Jaishankar added. "A partnership between an India that has an 8% growth rate for multiple decades ahead, and a Russia that is a key natural resource provider as well as a major technology leader will serve both of them and the world well."

The world is increasingly getting multi-polar and devising methods for cooperation is essential, to keep up, Minister Jaishankar said, as he listed out ten major areas of focus to build an stronger economic partnership with Russia. Jaishankar highlighted:

1. The bilateral trade stands at $66 billion and the 2030 target of $100 billion is realistic.
2. The balance of trade between both nations needs attention, and it is imperative that non-tariff barriers and regulatory impediments are speedily addressed.
3. There is a need to vigorously take forward the India-Eurasian Economic Union that has been recently set up.
4. Need to expedite negotiations on the bilateral investment treaty.
5. Cooperation in Russian Far East encourages other activities in the connectivity sphere.
6. Special Rupee Vostro Accounts (SRVA) are an effective mechanism to allow international trade in Indian Rupee. However, even in the short run, a better trade balance with national currency settlement is the obviously the answer.
7. A bilateral pact between customs authorities of both the nations has help in the ease of doing trade.
8. Three connectivity initiatives - Intl North-South Transport Corridor, Chennai-Vladivostok Corridor and Northern Maritime Route - all need continued attention.
9. Growing Russian appreciation of Make in India as a programme to deepen business ties will take forward the India-Russia cooperation.
10. The importance non-economic domains, such as education, films as contribution to larger societal and economic connect.

Jaishankar said aside of these expressions of comprehensive economic ties with Russia, there is also a Programme of Economic Cooperation Till 2030, on which work in underway.