India–Russia trade surges fivefold to $68 billion, but deficit balloons to $59 billion, says Jaishankar

External Affairs Minister S Jaishankar, during the 26th session of the India–Russia Inter-Governmental Commission on Trade, underscored a pivotal economic shift: bilateral trade has leapt from $13 billion in 2021 to $68 billion in 2024–25 — a fivefold increase.

However, this growth comes with a stark caveat: India’s trade deficit with Russia has ballooned from $6.6 billion to nearly $58.9 billion, prompting calls for urgent action.

Jaishankar emphasized that for this strategic partnership to have sustained economic value, it must evolve beyond imbalanced trade.

Addressing the India–Russia Business Forum in Moscow, he stressed the need for “doing more and doing differently,” urging Russian companies to deepen engagement through joint ventures and explore fresh fronts of cooperation.

To remedy the imbalance, he called on Moscow to reduce tariff and non-tariff barriers, improve logistics via infrastructure such as the International North-South Transport Corridor, the Northern Sea Route and the Chennai–Vladivostok corridor, and establish smooth payment mechanisms.

The finalized Terms of Reference for a Free Trade Agreement (FTA) with the Russia-led Eurasian Economic Union (EAEU) marks a key step toward these goals.

Meanwhile, Russia reiterated its readiness to maintain oil supply to India through a “special mechanism,” despite US. sanctions.

The Russian embassy reaffirmed its intent to shrink trade imbalance and sustain energy supplies, while ensuring bilateral trade continues to grow at an estimated 10% annually.