Trade Imbalance: A Major Concern in India-Russia Relations, Asserts Indian Foreign Ministry Deputy Vinay Kwatra

As the trade and economic ties between India and Russia continue to evolve, a significant challenge has come to the forefront—the issue of trade imbalance. This concern was highlighted by Vinay Kwatra, the First Deputy Minister of India's Ministry of External Affairs, during a statement about the upcoming bilateral summit in Moscow, according to TASS.

Kwatra noted that although the trade turnover between Russia and India has seen a notable increase, reaching close to $65 billion, the growth is predominantly driven by robust cooperation in the energy sector and a substantial rise in the supply of Russian energy resources. This development has led to a scenario where the majority of the bilateral trade turnover is now skewed towards Russia.

In contrast, the total value of Indian exports to Russia stands at around $4 billion, a figure that Kwatra emphasized needs to be increased. "This trade imbalance will be a priority in the discussions during the summit," Kwatra stated, underscoring the importance of addressing this issue at the high-level meeting.

Earlier, RIA Novosti reported that the trade turnover between Russia and India hit a record high of $17.5 billion in the first three months of 2024, marking a 5% increase year-on-year. This recent surge in trade figures exceeded the previous record set in the second quarter of 2023 by $500,000.

The focus on the trade imbalance highlights the complexities in the burgeoning economic relationship between India and Russia. The upcoming summit in Moscow presents an opportunity for both nations to address these disparities and work towards a more balanced and mutually beneficial economic partnership.