India, Russia eye $100 billion trade by 2030, cooperation in energy, agriculture

India and Russia on Wednesday agreed to boost bilateral trade to over USD 100 billion by 2030 by reinvigorating investments, using national currencies for trade and increasing cooperations in sectors ranging from energy to agriculture and infrastructure.

In the joint statement issued following the 22nd Annual Bilateral Summit between Russian President Vladimir Putin and Prime Minister Narendra Modi in Moscow, the two sides reiterated commitment to development of the special and privileged strategic partnership and vowed to give additional impetus to the deepening of bilateral interaction by promoting Russia-India trade and economic cooperation.

The two sides agreed on nine key areas of cooperations that spanned trade, trade settlement using national currencies, increased cargo turnover through new routes such as the North-South Transport Corridor, raising volume of trade in agri products, food and fertiliser, deepening cooperation in the energy sector, including nuclear energy, strengthening interaction for infrastructure development, promotion of investments and joint projects across digital economy, collaborating on supply of medicines and development of humanitarian cooperation.

The leaders agreed to aspire "for elimination of non-tariff trade barriers related to bilateral trade between India and Russia" and continue "dialogue in the field of liberalisation of bilateral trade, including the possibility of the establishment of the EAEU-India Free Trade Area".

This to achieve mutually agreed trade volume of more than USD 100 billion by 2030, including increased supplies of goods from India to achieve balanced bilateral trade. Also, reinvigoration of investment activities within the framework of the special investment regimes was agreed.

They agreed on "development of a bilateral settlement system using national currencies", the joint statement said.

This means any purchase by India from Russia such as crude oil, can potentially be paid in Indian rupee.

This currency can then be used by Russia to settle payments for imports from India. A vice-versa use of Russian rubles is also possible.

The two leaders agreed for "increase of cargo turnover with India through the launch of new routes of the North-South International Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Sea Line," it said, adding that optimisation of customs procedures through the application of intelligent digital systems for barrier-free movement of goods was also agreed.

They were for raising the volume of bilateral trade in agricultural products, food and fertilisers as well as maintenance of an intensive dialogue aimed at removing veterinary, sanitary and phytosanitary restrictions and prohibitions.

"Development of cooperation in key energy sectors, including nuclear energy, oil refining and petrochemicals and expanded forms of cooperation and partnership in the field of energy infrastructure, technologies and equipment" too was part of the agreement, it said.

"Facilitation of mutual and international energy security, i.E. Taking into account the prospects of global energy transition" was also agreed upon.

The two sides agreed to strengthen interaction in the fields of infrastructure development, transport engineering, automobile production and shipbuilding, space and other industrial sectors.

Facilitation of entry of Indian and Russian companies in each other's markets by creating subsidiaries and industrial clusters, too, was agreed upon.

"Promotion of investments and joint projects across various sectors of digital economy, science and research, educational exchanges and internships for employees of high-tech companies" also found a mention in the joint statement.

They also agreed for facilitation of the creation of new joint (subsidiary) companies by providing them with favourable fiscal regimes.

Promotion of systematic cooperation in the development and supply of medicines and advanced medical equipment as well as studying the possibility of opening branches of Indian medical institutions in Russia and recruiting qualified medical personnel as well as strengthening of coordination in the field of medical and biological safety was also agreed upon.

The two sides were in favour of developing humanitarian cooperation, consistent expansion of interaction in the fields of education, science and technology, culture, tourism, sports, healthcare and other areas.

"The President of the Russian Federation and the Prime Minister of the Republic of India instructed the Russian-Indian Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation to study the identified priority areas and to assess the progress at its next meeting," it added.