'Need to address urgently': Jaishankar flags soaring trade imbalance despite fivefold rise in India-Russia trade

External Affairs Minister S Jaishankar on Wednesday raised concerns over the sharp rise in India’s trade imbalance with Russia, even as bilateral trade in goods has surged more than fivefold over the past four years.

Addressing the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), Jaishankar said, “…Over the last four years, our bilateral trade in goods has increased, as you have noted, more than five-fold from $3 billion in 2021 to $68 billion in 2024-25 and it continues to grow. However, a major trade imbalance has accompanied the growth; it has increased from $6.6 billion to $58.9 billion which is about nine times. So we need to address that urgently.”

Jaishankar also outlined the key priorities for deepening bilateral economic ties, with a strong focus on easing trade barriers and boosting connectivity.

Among the top agenda items were removal of tariff and non-tariff barriers, resolving logistics bottlenecks, and enhancing regional connectivity through major corridors such as the International North-South Transport Corridor (INSTC), the Northern Sea Route, and the Chennai-Vladivostok maritime link.

Jaishankar stressed the need to streamline payment mechanisms, finalise and execute the Programme of Economic Cooperation until 2030, and to accelerate negotiations for the India-Eurasian Economic Union Free Trade Agreement, whose terms of reference were finalised during the session.

Regular engagement between Indian and Russian businesses was also identified as critical to realising these goals.

“They will not only help to address the imbalance and grow our trade, but also hasten the timely achievement of our revised trade target of $100 billion by 2030,” said Jaishankar.

Noting that the meeting was taking place against the backdrop of a complex geopolitical environment, Jaishankar emphasised that despite global challenges, the leadership of both countries remains in close and regular contact, having met twice in person last year.

“They provide us wise and practical guidance to our Special and Privileged Strategic Partnership. They had two ‘in person’ meetings last year and are personally committed to further advancing our strategic partnership,” he added.

As the two sides convened to discuss economic cooperation, Jaishankar proposed several measures aimed at improving coordination and strengthening the partnership, underscoring the importance of enhanced efficiency in achieving shared goals.

Earlier in the day, External Affairs Minister S Jaishankar, currently on a three-day visit to Russia, met Russian scholars and think tank representatives to discuss India‑Russia relations and broader global issues.

Jaishankar’s visit comes against the backdrop of deteriorating ties between India and the US, following President Donald Trump’s decision to double tariffs on Indian goods to 50%, which includes an additional 25% penalty for purchasing Russian crude oil.

Taking to X, Jaishankar said, “Pleased to interact with prominent scholars and think tank representatives of Russia. Discussed India-Russia relations, contemporary world geopolitics and India’s viewpoint.”

Later, the External Affairs Minister also paid tribute at Moscow’s Tomb of the Unknown Soldier on Wednesday. The historic war memorial near the Kremlin is dedicated to the Soviet soldiers killed during World War II.

Jaishankar’s visit comes before a possible meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin during the SCO Summit in Tianjin, China. Additionally, discussions are underway regarding the possibility of Putin visiting India later this year.

On Monday, Russian President Vladimir Putin had called Prime Minister Narendra Modi and shared his insights about the recent meeting in Alaska with US President Donald Trump over the Ukraine conflict. PM Modi said India has consistently called for a peaceful resolution of the Ukraine conflict and supports all efforts in this regard.

With inputs from agencies