Jaishankar in Moscow: India and Russia Must Unlock Full Trade Potential

 

Unlocking the Full Potential of India-Russia Trade: Jaishankar’s Call for Stronger Economic Ties

India’s External Affairs Minister, S. Jaishankar, recently wrapped up a two-day visit to Moscow where he made a strong pitch for deeper economic cooperation between India and Russia. His message was clear: both nations must look beyond traditional ways of doing business and unlock the full potential of their trade and investment relationship.

Speaking during his meeting with Russia’s First Deputy Prime Minister, Denis Manturov, Jaishankar underlined the importance of adapting to the current global situation. He described the geopolitical environment as “complex” but insisted that this should not hold back progress. Instead, he called for fresh approaches, stating that “doing more and doing differently” should be the guiding principles for both countries as they chart their economic future.

This visit comes at a time when India is facing significant challenges on the trade front. The Trump administration has imposed steep tariffs on Indian imports — around 50% in some sectors — and a 25% tariff on oil imports from Russia. These measures have created additional hurdles for Indian businesses and increased the cost of energy, making the case for stronger bilateral ties with Russia even more pressing.

For decades, India and Russia have enjoyed a steady partnership, often described as time-tested. While the relationship has been dominated by defense and strategic cooperation, Jaishankar’s remarks point to the urgent need for diversification. Trade between the two countries, though growing, remains far below its potential. In areas such as energy, technology, manufacturing, and infrastructure, there is vast room for expansion.

Energy in particular stands out as a key driver of the relationship. India, one of the world’s largest consumers of oil and gas, has consistently relied on Russia for its energy security. However, rising tariffs and sanctions-related challenges have complicated the equation. Jaishankar’s push for stronger economic ties reflects India’s determination to secure stable, long-term arrangements in this sector.

Beyond energy, sectors like pharmaceuticals, agriculture, and information technology also hold promise. Indian pharmaceutical products have already established a strong presence in the Russian market, while Russia has the potential to become a larger supplier of agricultural commodities to India. At the same time, collaboration in digital technologies and start-ups could give a modern dimension to the partnership, moving it away from its traditional focus on defense.

Jaishankar’s remarks also highlight a broader point — the need for India to rethink its global trade strategies in light of rising protectionism. By strengthening ties with trusted partners like Russia, India can create alternative channels of growth and reduce its vulnerability to external trade shocks.

Ultimately, Jaishankar’s Moscow visit was not just about routine diplomacy. It was a call to action, urging both countries to reimagine their economic relationship. As he rightly said, it is time to move away from the beaten track and explore new, innovative ways of cooperation. If India and Russia can rise to this challenge, their partnership has the potential to become a model of resilience and growth in an uncertain world.