New Horizons of Cooperation Between Russia and India
On June 7, as part of the St. Petersburg International Economic Forum, the “Russia-India” business dialogue took place, during which experts discussed key areas of cooperation and prospects for their development.
The session was moderated by Sergey Cheremin, Minister of the Government of Moscow, Head of the Department for External Economic and International Relations of Moscow, Chairman of the Business Council for Cooperation with India. He recalled that since 2010, Russia and India have maintained a strategic privileged partnership, which necessitates continued full-scale collaboration. Trade between the two countries continues to grow, with Russia’s foreign trade with India reaching a historic high of nearly $57 billion. However, a crucial current task is establishing a trade and economic balance, particularly by identifying new promising goods for mutual exchange.
Ambassador of the Republic of India to the Russian Federation, Vinay Kumar, noted that in India, there is a consensus among all political parties on the need to expand cooperation with Russia. In recent years, much discussion has centered on diversifying ties and deepening collaboration between the two nations. The ambassador emphasized that the goals set by the governments of Russia and India have been successfully achieved. He stressed the importance of continuing joint efforts to make trade more sustainable and expressed India’s readiness to increase exports to Russia, with negotiations already underway with the Russian government and business community. Plans are in place to enhance the availability of Indian products, including pharmaceuticals and agricultural goods, on the Russian market.
The ambassador highlighted several investment promotion schemes implemented in India, which have significantly impacted both the domestic market and exports. Vinay Kumar pointed out the need to increase the number of joint ventures and mentioned that this year marked the first India-Russia Investment Forum, which attracted over 270 participants. Business missions play a vital role in expanding cooperation, with more than 20 business delegations visiting India last year. Such visits are expected to continue as they facilitate direct business connections.
Vinay Kumar also noted improvements in logistics compared to the situation two years ago, emphasizing ongoing work on transport and maritime corridors, particularly the Vladivostok-Chennai route. Another key sector for cooperation is tourism, with joint events for tour operators from both countries planned for the coming month.
Vladimir Ilyichev, Deputy Minister of Economic Development of the Russian Federation, also highlighted the active growth of Russia-India cooperation. For instance, negotiations on a free trade agreement are being intensified. There is significant potential for Indian exports to the Russian market, especially in chemicals, food, and pharmaceuticals. Ilyichev noted that many challenges related to payments and logistics have been successfully resolved.
Interregional cooperation with India is gaining increasing importance. Moscow plans to sign a cooperation program with Maharashtra, a state involved in global projects such as the Delhi-Mumbai Industrial Corridor. Rahul Narvekar, Honorary Speaker of the Maharashtra Legislative Assembly, expressed hope for deeper ties with Russia. Maharashtra is one of India’s most industrially developed states, and as the country’s economy transforms, greater emphasis is being placed on the service sector, where knowledge exchange with Russian counterparts is vital. “Maharashtra ranks first in attracting foreign direct investment among Indian states,” Narvekar noted, adding that the state has much to offer Russian businesses. Trade volume has grown to $3.9 billion over the past two years, and Narvekar expressed confidence that bilateral ties between Maharashtra and Russia will strengthen further.
Tribhuvan Darbari, Chairman of the India-Russia Business Council of the Federation of Indian Chambers of Commerce & Industry (FICCI), emphasized cooperation in security, defense, and economics but singled out culture as a cornerstone. “Culture is the foundation of our ties, including economic ones,” Darbari stated. India seeks diversification to enhance non-commodity trade. Scientific and technological collaboration between Russia and India will help create competitive products for both economies. The exchange of specialists, particularly in agriculture and medicine, plays a crucial role. Darbari also highlighted the need for investment in logistics and infrastructure projects, as well as cooperation in AI, blockchain, and other advanced technologies where Russia has extensive expertise. He proposed integrating tourism, business, and healthcare, noting strong demand for medical tourism and the potential to establish a dedicated hub in India. However, some areas, such as banking, still require improvement. Ivan Nosov, Head of Sberbank’s branch in India, stated that many financial challenges in foreign trade transactions have been successfully resolved. “Payments are processed within a day, and any amount of rupees can now be converted into rubles on the Russian market, so the technical infrastructure for bilateral payments is fully in place,” Nosov assured. The rupee is gaining recognition in Russia, with growing interest in rupee-denominated deposits (their volume has increased ninefold since the beginning of the year). The rupee’s stability against the dollar helps hedge risks. “The main challenge in Russia-India business is not logistics or payments but a lack of information,” Nosov noted, stressing the need to better promote the opportunities in both markets to boost trade.