'Need to address that urgently': Jaishankar flags soaring India-Russia trade imbalance amid rising oil imports

Jaishankar flags soaring trade imbalance in India Russia trade

External Affairs Minister S Jaishankar has expressed concern over the sharp increase in India’s trade imbalance with Russia, despite a more than fivefold rise in bilateral goods trade over the past four years.

During his visit to Moscow, Jaishankar proposed steps to strengthen the trade partnership and tackle the $58.9 billion trade deficit stemming from India's higher oil imports from Russia. He emphasized that this imbalance “needed to be addressed urgently.”

"Over the last four years, our bilateral trade in goods has increased, as you have noted, more than five-fold from $3 billion in 2021 to $68 billion in 2024-25 and it continues to grow. However, a major trade imbalance has accompanied the growth; it has increased from $6.6 billion to $58.9 billion which is about nine times. So we need to address that urgently," Jaishankar mentioned while addressing the  India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC).

At the 26th Session of the India-Russia Inter-Governmental Commission for Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC), EAM Dr S Jaishankar says "We are meeting here after about 10 months since the last Session in November 2024 in New Delhi,… pic.twitter.com/62lIpuS69l

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Key agenda items of Jaishankar's meeting included the removal of tariff and non-tariff barriers, resolving logistics challenges, and boosting regional connectivity through major routes such as the International North-South Transport Corridor (INSTC), the Northern Sea Route, and the Chennai-Vladivostok maritime corridor.

To diversify trade and address the imbalance, Jaishankar also proposed streamlining payment mechanisms and ensuring the early conclusion of the India-Eurasian Economic Union FTA, whose terms of reference were finalized on Wednesday.

Regular engagement between Indian and Russian businesses was also identified as critical to realising these goals.

“They will not only help to address the imbalance and grow our trade, but also hasten the timely achievement of our revised trade target of $100 billion by 2030,” said Jaishankar.

Jaishankar emphasised that despite global challenges, the leadership of both countries remains in close and regular contact, having met twice in person last year.

“They provide us wise and practical guidance to our Special and Privileged Strategic Partnership. They had two ‘in person’ meetings last year and are personally committed to further advancing our strategic partnership,” he added.

Jaishankar also emphasized the need for Russian companies to engage “more intensively” with their Indian counterparts.

"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.

Jaishankar is set to meet his Russian counterpart, Sergey Lavrov, for a diplomatic engagement focused on strengthening the "special privileged strategic partnership" between India and Russia.

EAM is on a three-day visit to Russia, taking place against the backdrop of strained India-US relations following President Donald Trump's decision to double tariffs on Indian goods to 50%, including an additional 25% penalty for purchasing Russian crude oil.

The visit comes amid the possibility of a meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin during the SCO Summit in Tianjin, China. Additionally, discussions are ongoing about a potential visit by Putin to India later this year.

(With agency inpts)