India and Russia are in talks to enhance bilateral trade by adopting rupee-ruble payments and reducing non-tariff barriers, aiming to diversify trade and address the current trade imbalance.
Bollywood Fever: India and Russia are actively exploring new avenues to strengthen their bilateral trade relationship, with discussions centered around adopting mutual payments in their national currencies—rupees and rubles—and reducing non-tariff barriers. These efforts aim to facilitate smoother trade transactions and address the significant trade imbalance between the two nations, particularly as petroleum products currently dominate their trade exchanges.
The discussions, led by Indian Commerce Secretary Sunil Barthwal and Russian Economic Development Minister Maxim Reshetnikov, took place in July, where both sides emphasized the importance of diversifying trade beyond oil to create a more balanced economic partnership.
“We discussed a lot of issues to improve trade between India and Russia,” Barthwal shared during a briefing in New Delhi. “We also discussed how to facilitate rupee-ruble trade, how non-tariff measures are impacting our trade, and how they should be reduced.”
Currently, trade turnover between India and Russia stands at approximately $67 billion, with a significant trade deficit favoring Russia. India’s exports to Russia amounted to $4.3 billion for the financial year ending March 31, 2024, while imports—primarily driven by Russian oil—totaled $61.4 billion, resulting in a trade deficit of $57.1 billion for India.
Both nations are keen on diversifying their trade beyond the energy sector, aiming to reduce dependency on petroleum and explore new opportunities in various other sectors. The adoption of rupee-ruble trade is seen as a crucial step toward achieving this diversification and addressing the existing trade imbalance.
As India and Russia continue their dialogue, the successful implementation of these measures could pave the way for a more equitable and sustainable economic relationship, benefiting both nations in the long term.
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