India-Russia Deal
India and Russia have decided that in the coming five years, both countries will increase mutual trade from about 50% to $ 100 billion. For this, there will be an attempt to reduce tariffs (fees) and remove other obstacles. Foreign Minister S. Jaishankar said during the Moscow tour on Wednesday that India and Russia will have to remove all hurdles and non-tariff obstacles to increase trade. Russia is currently the fourth largest trading partner in India, while India is the second largest in Russia.
Such a reply to Trump
This visit of Jaishankar is a link to the growing cooperation among the BRICS countries. All these countries have faced tariffs and business threats from US President Donald Trump. The tour is of three days and is being seen as an annual bilateral interaction. It is believed that this will clear the way for President Vladimir Putin’s visit to India at the end of this year.
Addressing the India-Russian Business Forum in Moscow, Jaishankar pointed to the US without naming that the need of reliable and stable partners is needed amidst the current global uncertainty. He said that we all know that the current geopolitical conditions are quite complicated. At such a time, there is a constant and close contact between our leaders.
India’s relationship with China should be strong
India is making a distance between America’s threats. After talking to Putin this week, PM Narendra Modi called him a friend and now there is a preparation to strengthen the relationship with China too. Modi is going to China for the first time after seven years in the end of August and will meet President Xi Jinping there.
On the other hand, the Trump administration is angry at India’s oil purchase from Russia. He says that Putin gets money for Ukraine war. Trump has imposed 25% tariff on goods coming from India and threatened to make it 50% from 27 August. If this happens, India’s annual export of $ 85 billion to America will be severely affected.
India cleaned its side on crude oil
India says that it has the right to buy the cheapest oil from where it meets and American tariffs are unfair. Oil with discounts from Russia is a big weapon for India to control domestic inflation. Jaishankar also said that India-Russia should bring more diversity in business, do more joint ventures among companies and meet regularly to overcome problems like payment system.