External Affairs Minister S Jaishankar on Wednesday called upon Russian companies to engage “more intensively” with its Indian counterparts, citing New Delhi’s initiatives that have opened more avenues for foreign businesses.
Addressing the India-Russia Business Forum in Moscow, Jaishankar highlighted the time-tested relationship the two countries have shared and called for deeper economic ties amid global uncertainty.
“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 said.
Jaishankar made the remarks after he highlighted how India’s GDP was on a rise, drawing focus on the “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 External Affairs Minister’s invite to Russian companies comes days ahead of US President Donald Trump’s 50% tariff deadline for India. The Republican had earlier announced 25% duties on Indian imports, which he later doubled, citing India’s oil trade with Russia.
While one half of these tariffs have been imposed, the other are set to take effect on August 27.
‘India-Russia ties one of steadiest’
Further pushing for deeper trade ties between the two countries, S Jaishankar said in Moscow that while India and Russia’s ties have been one of the steadiest over the years, it didn’t reflect as much on the economic cooperation between them.
“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,” Jaishankar said.
Pushing for both nations to contemplate more investments, joint ventures and other forms of collaboration, Jaishankar said that him and Russia’s first deputy prime minister Denis Manturov want to send out a “clear message that an enduring strategic partnership must have a strong and sustainable economic component”.
Jaishankar also pushed for a sync between what the respective governments are discussing and what businesses are planning in order for India and Russia to collaborate better economically.
What Russia said on India trade
Even in the face of Donald Trump’s 50% tariff threat to India over oil trade with Russia, Moscow has dismissed concerns that the move would be hitting oil supplies to New Delhi.
Moscow has a “very special mechanism” to get around the duties imposed, some senior Russian officials have said. “Despite the political situation, we can predict that the level of crude oil imports would be approximately the same,” deputy trade commissioner Evgeny Griva said.
Russia currently accounts for almost 40% of India’s energy supplies and India is the second largest buyer of Russian energy, after China.