India and Russia Double Down on Trade, Aim for $100 Billion

India and Russia are working on an ambitious plan to expand bilateral trade by 50% over the next five years, setting a target of $100 billion. The move comes as both nations face increasing tensions with the United States and seek to diversify their economic partnerships.

Jaishankar’s Moscow Visit Sets The Tone

As per news reports, External Affairs Minister Subrahmanyam Jaishankar, currently on a three-day visit to Moscow, emphasised the need to reduce trade bottlenecks and non-tariff barriers to meet the ambitious goal. Speaking at the India-Russia Business Forum, he underlined the importance of reliable partnerships in a volatile global climate, stating, “We are all acutely aware that we are meeting in the backdrop of a complex geopolitical situation. Our leaders remain closely and regularly engaged.” 

He also called for greater diversification of trade, more joint ventures, and improved mechanisms such as payment systems. His visit is expected to pave the way for Russian President Vladimir Putin’s visit to India later this year.

Strengthening Strategic Ties Amid US Pressure

Russia is already India’s fourth-largest trading partner, while India ranks as Russia’s second-largest. Meanwhile, the US has criticised India’s purchases of discounted Russian oil, arguing that they help fund Russia’s war in Ukraine. US President Donald Trump has imposed a 25% tariff on Indian goods and has threatened to raise it to 50% from August 27, a move that could severely hit India’s $85 billion in annual exports.

India Defends Oil Purchases To Curb Inflation

India has dismissed US criticism, defending its right to buy crude from the cheapest available source. It argues that Russian oil, offered at a discount, is vital in keeping domestic inflation in check. As per news reports, Jaishankar stated that both countries must focus on dependable cooperation, while India continues to assert its independence in energy procurement and trade strategy.

Read More: US Tariffs to Mostly Impact MSMEs in India's Textile, Diamond, and Chemical Sectors: Report!

Conclusion

As India and Russia chart a path towards $100 billion in annual trade, their growing cooperation underscores a shift away from reliance on Western markets. With tariff threats from the US looming, both countries are doubling down on dependable partnerships, using trade diversification and discounted oil to secure long-term economic stability.

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