Amid the US imposing a 50% tariff on India, External Affairs Minister S Jaishankar has pushed to increase trade with Russia, encouraging Russian companies to engage "more intensively" with their Indian counterparts.
Noting India's rapidly growing economy and initiatives like 'Make in India' that have opened up new windows for foreign businesses, Jaishankar said that these dimensions represent an invitation for Russian companies to engage more.
"An India with a GDP of USD 4 trillion plus growing at 7% for the foreseeable future has an obvious need for large resources from dependable sources. In some cases, it could be assured supplies of essential products, fertiliser, chemicals, and machinery, being good examples. Its rapidly growing infrastructure offers business openings to enterprises with an established track record in their own country," said Jaishankar.
"The 'Make in India' and other such initiatives have opened up new windows for foreign businesses. The modernisation and the urbanisation of India generate their own demands, flowing from shifts in consumption and lifestyle. Each of these dimensions represent an invitation for Russian companies to engage more intensively with their Indian counterparts. Our endeavour is to encourage them to rise to that challenge," he added.
Mentioning that India and Russia have nurtured one of the steadiest relationships between major nations, Jaishankar pushed for more "strenuous efforts" to diversify and balance trade between both nations.
"India and Russia have nurtured one of the steadiest relationships between major nations in current times is now widely recognised. However, that did not automatically translate into significant economic cooperation. Our trade basket remains limited and till recently, so did our trade volume. It may have grown in recent years, but then, so too has the trade deficit. Both the diversification and balancing of trade now urgently mandate more strenuous efforts on our part. At the end of the day, they are essential not just to reach higher trade targets but even to sustain the existing levels," he said.
Jaishankar pushed for deeper cooperation to promote growth and accelerate development and expressed India's willingness to contemplate more investments, joint ventures and other forms of collaboration.
"It is reasonably evident that there is much that India and Russia can do for each other in promoting growth and accelerating development. What we seek to do as Governments is to provide the guidance and create conditions for economic activities to take place. Clearly much centres around trade but there is growing willingness to contemplate more investments, joint ventures and other forms of collaboration. First DPM Manturov and I are here amongst you to encourage those processes. We want to send a clear message that an enduring strategic partnership must have a strong and sustainable economic component." he said.
Further speaking about India signing Terms of Reference (ToR) for the India-Eurasian Economic Union on a Free Trade Agreement, Jaishankar said," We have today concluded the Terms of Reference for the India-Eurasian Economic Union FTA. That will surely make a difference when concluded. We spoke about motivating joint ventures in key areas where the demand is already established. Some initiatives of significant investment levels were also spoken about. Our skilling and mobility endeavours have started to take off. The desire to improve connectivity is also expressed through multiple options."
"But in the final analysis, what we really need is for businesses to step forward confidently. Not just that, also ensure that there is a close collaboration between what Governments are discussing and businesses are planning," he added.
Jaishankar positive push to increase trade with Russia comes after US levied an ad valorem duty of 25 per cent on Indian goods, but has announced an additional 25 per cent tariff that will take effect from August 27, raising the total duty to 50 per cent.
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