Daijiworld Media Network- Moscow
Moscow, Aug 21: At a time when the United States has imposed steep tariffs on Indian goods, External Affairs Minister S Jaishankar has made a strong pitch for enhanced India–Russia economic cooperation, urging Russian companies to engage “more intensively” with their Indian counterparts.
Speaking in Moscow, Jaishankar noted that India’s USD 4 trillion-plus economy, growing at over 7% annually, presents enormous opportunities for dependable partners. He highlighted essential imports like fertilisers, chemicals, and machinery, alongside India’s booming infrastructure sector, as areas where Russian enterprises could play a crucial role.
“The Make in India and other such initiatives have opened new windows for foreign businesses. The modernisation and urbanisation of India create their own demands, flowing from shifts in consumption and lifestyle. Each of these dimensions represent an invitation for Russian companies to engage more intensively. Our endeavour is to encourage them to rise to that challenge,” Jaishankar said.
While acknowledging that India and Russia have one of the “steadiest relationships between major nations,” the minister pointed out that trade cooperation remains far below potential. He stressed that diversification and balancing of trade were urgently needed, given the growing deficit in India’s favour.
Jaishankar also underlined India’s openness to deeper collaborations, including joint ventures and new investments. “There is much that India and Russia can do for each other in promoting growth and accelerating development. Our job as governments is to provide the guidance and create conditions for economic activities to take place,” he stated.
Significantly, Jaishankar announced the conclusion of Terms of Reference (ToR) for a Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU). He expressed confidence that the agreement, once finalised, would boost trade volumes and strengthen long-term economic ties.
“We spoke about motivating joint ventures in key areas where demand is already established. Some initiatives of significant investment levels were also discussed. The desire to improve connectivity is also expressed through multiple options,” he said, while calling on businesses from both sides to complement government-level discussions with concrete partnerships.
His remarks came against the backdrop of Washington’s recent decision to raise tariffs on Indian goods. The US had earlier levied a 25% duty but has now announced an additional 25%, taking the total ad valorem duty to 50%, effective from August 27.
Jaishankar’s Moscow outreach is being seen as a strategic signal of India’s intent to diversify its trade partnerships and insulate its economy from Western protectionist measures.