Economy
Strategic Partners To Economic Allies: Jaishankar Bats For Russia Trade Amid Trump's Tariff Tantrums
External Affairs Minister S Jaishankar. (File photo)
Amid the United States raising tariffs on Indian goods to 50 per cent, External Affairs Minister S Jaishankar has called for stronger trade ties with Russia, urging Russian firms to step up their engagement with Indian businesses, NDTV reported.
Highlighting India’s fast-growing economy and policies such as ‘Make in India’, Jaishankar stressed that these initiatives present new opportunities for Russian companies to expand their involvement in India’s market.
"An India with a GDP of USD 4 trillion plus growing at 7 per cent 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.
Acknowledging the strong diplomatic ties between India and Russia, Jaishankar emphasised the need for greater efforts to diversify trade and reduce imbalances in the economic relationship.
"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.
"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.
Discussing progress on the India-Eurasian Economic Union Free Trade Agreement, Jaishankar confirmed the conclusion of the Terms of Reference.
He said the agreement would enhance opportunities for joint ventures, high-value investments, workforce mobility, and improved connectivity across sectors.
He stressed that the ultimate responsibility lies with businesses to take bold steps and align their strategies closely with government discussions to unlock the full potential of bilateral cooperation.
Jaishankar’s call for stronger India-Russia trade ties comes in the wake of Washington’s decision to double tariffs on Indian goods to 50 per cent, with the new rates set to take effect from 27 August.
