Mumbai, India: Speaking at the India-Russia Business Forum in Mumbai, External Affairs Minister Dr. S. Jaishankar emphasized the mutually beneficial relationship between India and Russia, advocating for long-term partnerships rather than short-term, transactional engagements. He noted that the two nations have complementary economies and can create sustainable growth in various sectors.
Energy and Fertilizer Sectors as Key Areas of Collaboration
Dr. Jaishankar highlighted India’s prominent role in global energy markets, with significant demand for oil, gas, coal, and uranium. He proposed that a stable, long-term agreement in these sectors would allow India and Russia to navigate market volatility and uncertainty. He also stressed India’s substantial demand for fertilizers, adding that collaboration in this area could bolster agricultural productivity while benefiting both economies.
Russia’s Strategic Focus on Asia
In his address, Dr. Jaishankar also touched upon Russia’s strategic pivot toward Asia since 2022, noting that this shift has created numerous new opportunities for cooperation. "Russia has consciously focused more deeply on Asia since 2022. This has created many more avenues of cooperation. A long history of strong convergence and deep friendship allows us to make the best of both factors," he stated. He emphasized that the complementary nature of the two economies is key to building a robust partnership, with India’s 8% growth rate and its leadership in technology serving as a powerful driver for mutual benefit. He highlighted that such a partnership would not only benefit India and Russia but also contribute positively to the global economy.
India-Russia Human Resources Initiative
The minister addressed the global demographic imbalances that have led to demand and supply gaps in the workforce, suggesting that India and Russia can form partnerships in developing a global workforce. He proposed a focused initiative to customize Indian human resources to meet Russia’s specific labor market needs, highlighting the crucial role of business engagement in making this vision a reality.
Top Ten Key Developments in India-Russia Relations
Dr. Jaishankar identified ten notable developments in India-Russia relations that underscore the progress and potential of this partnership:
1. Bilateral Trade Growth: Bilateral trade between India and Russia has reached $66 billion, with the ambitious target of $100 billion by 2030 now appearing achievable.
2. Trade Balance Redressal: He emphasized the need to address the current one-sided trade balance for a more equitable partnership.
3. India-Eurasian Economic Union Trade: Trade negotiations began in March, with both sides committed to advancing discussions.
4. Investment Forum in Moscow: April saw the first-ever bilateral investment forum in Moscow, promoting opportunities for cross-border investments.
5. Russian Far East Cooperation Program: Signed in July, this five-year agreement (2024-2029) promotes cooperation, including critical connectivity initiatives.
6. Trade in National Currencies: With current global economic challenges, the mutual settlement of trade in national currencies has gained importance.
7. Customs Cooperation Agreement: A bilateral agreement on economic operators signed in May has streamlined customs processes, enhancing trade efficiency.
8. Connectivity Projects: Three major connectivity projects—the International North-South Transport Corridor, the Chennai-Vladivostok Corridor, and the Northern Maritime Route—were spotlighted as crucial for optimizing trade routes.
9. Make in India Initiative: Russian interest in India’s "Make in India" initiative will foster collaboration across sectors and deepen economic ties.
10. Non-Economic Domains: Cultural and educational exchanges, including collaborations in film and education, are essential for building a well-rounded relationship that extends beyond economics.
Looking Forward
Dr. Jaishankar highlighted the upcoming India-Russia Intergovernmental Commission meeting in Delhi, where officials will review bilateral cooperation progress and set new milestones for future collaboration.
The India-Russia Business Forum marks a significant step in fortifying India-Russia ties, with leaders focusing on economic and cultural synergies that promise long-term benefits for both nations.
