Russian ambassador Denis Alipov during a conference held in New Delhi highlighted the growing bilateral trade between Bharat and Russia that doubled to almost $50 billion during January to September.
Amid increased trade between the two countries, whereas Russia is looking forward to more joint projects and developing new trade routes, Bharat has flagged about the skewed trade balance that needs controlling. Trade between the two nations has increased by above 200 per cent year-on-year during the first two quarters of FY24 owing to strong demand for hydrocarbons in Bharat.
“Our trade has increased by 2.1 times in January-September this year, up to almost 50 billion US$. 48.8 billion US$ to be precise, and this is expected to grow further and substantially surpass the figures of the previous year,” stated Alipov on Friday.
Post the Ukraine-Russia war, Moscow became the fourth-largest exporter to Bharat, particularly due to its oil exports. Bharat’s imports from Russia grew nearly five-fold in the last financial year to $46.2 billion.
Amid Bharat and Russia’s goal of joint projects in significant fields such as defence, railways, petrochemicals, shipbuilding and agricultural machinery, latter is wishing for conclusion of a free trade agreement between Bharat and the Eurasian Economic Union.
“The development of new trade routes like the Eastern Maritime Corridor and the Northern Sea Route will also be of interest in deepening trade ties,” shared Alipov.
Welcoming the growth, Promotion of Industry and Internal Trade department secretary Rajesh Kumar Singh said, “There has been an area of concern in the past about the trade balance between the two countries. Indirect costs to Russia are comparatively lower, leading to a skewed balance of trade.”
During FY23, Bharat had a $43 billion trade deficit with Russia, which left their exporters with large surpluses in their Vostro accounts in Bharat. Bharat has diversified its export basket to Russia to include pharmaceuticals, fertilisers, coal, diamonds, chemicals and ceramics, among other goods.
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