As Russian President Vladimir Putin touched down in Delhi for a pivotal state visit, the Chairman of the India-Russia Business Forum (IRBF) highlighted a significant and multi-faceted expansion in cooperation between the two nations. Sanjay Aggarwal, the forum's chairman, pointed to a remarkable surge in bilateral trade and strategic partnerships across diverse sectors, signaling a new chapter in the long-standing relationship.
Unprecedented Growth in Bilateral Trade
The bilateral trade volume between India and Russia has witnessed an extraordinary upswing, soaring from approximately $13 billion in the 2021-22 fiscal year to a staggering $65 billion in 2023-24. This dramatic increase, as detailed by Aggarwal, underscores the resilience and mutual benefit of the economic partnership. The growth is not merely in numbers but also in the diversification of the trade basket, moving beyond traditional areas.
A key driver of this surge has been India's increased import of Russian crude oil, which has provided energy security at a crucial time for the Indian economy. However, Aggarwal emphasized that the partnership is far more broad-based. There is a concerted push to enhance Indian exports to Russia, aiming to correct the trade imbalance and create a more sustainable economic model. Sectors like pharmaceuticals, chemicals, agricultural products, and machinery are seeing growing interest.
Strategic Cooperation Beyond Energy
The forum chairman outlined several critical areas where collaboration is intensifying. A major focus is on the development of the International North-South Transport Corridor (INSTC), a 7,200-kilometer multi-modal network connecting India to Russia via Iran. This corridor is poised to revolutionize trade logistics, drastically reducing cargo transit time and costs, and providing a reliable alternative to traditional routes.
Furthermore, discussions are actively progressing on the proposed Chennai-Vladivostok Eastern Maritime Corridor, which would create a direct sea link between South India and the Russian Far East. In the realm of finance, both nations are working to establish robust mechanisms for settlements in national currencies, the Indian Rupee and the Russian Ruble, to facilitate smoother trade amidst global financial uncertainties.
Future Prospects and Collaborative Vision
Sanjay Aggarwal expressed strong optimism for the future, identifying immense potential in several forward-looking sectors. Collaboration in critical and emerging technologies, including artificial intelligence, blockchain, and space research, is a key priority. The diamond industry presents another lucrative avenue, with possibilities for Russian rough diamonds to be polished in India, adding significant value and creating jobs.
The IRBF chairman also stressed the importance of fostering deeper connections between the small and medium enterprises (SMEs) of both countries and increasing people-to-people exchanges through tourism and education. The current momentum, fueled by high-level diplomatic engagement such as President Putin's visit, provides a powerful impetus to translate these discussions into concrete, on-ground projects and agreements.
In conclusion, the narrative from the India-Russia Business Forum is one of confident expansion. While energy trade provided the initial thrust, the relationship is maturing into a comprehensive strategic and economic partnership. With foundational projects like the INSTC moving forward and new areas of tech collaboration opening up, the India-Russia partnership is being redefined for the 21st century, built on mutual interest and strategic autonomy.
