The two sides agreed on nine key areas of cooperations that spanned trade, trade settlement using national currencies, increased cargo turnover through new routes such as the North-South Transport Corridor, raising volume of trade in agri products, food and fertiliser, deepening cooperation in the energy sector, including nuclear energy, strengthening interaction for infrastructure development, promotion of investments and joint projects across digital economy, collaborating on supply of medicines and development of humanitarian cooperation.
The leaders agreed to aspire “for elimination of non-tariff trade barriers related to bilateral trade between India and Russia” and continue “dialogue in the field of liberalisation of bilateral trade, including the possibility of the establishment of the EAEU-India Free Trade Area“.
Key Points of Agreement
- Elimination of Trade Barriers: Focus on reducing non-tariff barriers and exploring an EAEU-India Free Trade Area.
- Currency Settlement System: Implementing national currencies for trade to simplify transactions.
- New Trade Routes: Enhancing cargo turnover with new routes like the North-South Corridor and Chennai-Vladivostok Sea Line.
- Agricultural and Energy Cooperation: Increasing trade in agricultural products and collaborating in nuclear energy and oil refining.
- Infrastructure Development: Strengthening ties in transport engineering, shipbuilding, and space sectors.
- Digital Economy and Medical Advancements: Promoting joint projects in the digital economy and enhancing medical cooperation.
- Humanitarian Collaboration: Expanding ties in education, culture, tourism, and healthcare.
Expanding Trade and Economic Cooperation
In the joint statement following the summit, both leaders expressed their intention to eliminate non-tariff trade barriers and continue discussions on trade liberalization, including the possibility of establishing an EAEU-India Free Trade Area. They also committed to achieving a mutually agreed trade volume of more than USD 100 billion by 2030. This includes increased supplies of goods from India to balance bilateral trade and invigorating investment activities within special investment regimes.
Utilizing National Currencies
A major aspect of the agreement is developing a bilateral settlement system using national currencies. This arrangement allows India to pay for Russian imports, such as crude oil, in Indian rupees. Russia can then use these rupees to pay for Indian exports. The same system applies vice versa with Russian rubles. “Development of a bilateral settlement system using national currencies” is a key part of the joint statement.
Enhancing Trade Routes and Customs Procedures
The leaders agreed to increase cargo turnover by launching new routes like the North-South International Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Sea Line. They also discussed optimizing customs procedures through intelligent digital systems to facilitate barrier-free movement of goods. “Increase of cargo turnover with India through the launch of new routes… and optimization of customs procedures” was emphasized in their statement.
Boosting Agricultural and Energy Trade
The agreement includes plans to raise the volume of bilateral trade in agricultural products, food, and fertilizers. Both sides aim to maintain an intensive dialogue to remove veterinary, sanitary, and phytosanitary restrictions and prohibitions. In the energy sector, they agreed to cooperate in nuclear energy, oil refining, and petrochemicals, and to expand forms of cooperation and partnership in energy infrastructure, technologies, and equipment. “Development of cooperation in key energy sectors, including nuclear energy… and expanded forms of cooperation and partnership in the field of energy infrastructure” was highlighted.
Infrastructure and Industrial Collaboration
Both countries will strengthen interactions in infrastructure development, transport engineering, automobile production, shipbuilding, space, and other industrial sectors. They plan to facilitate the entry of Indian and Russian companies into each other’s markets by creating subsidiaries and industrial clusters. “Strengthening of interaction in the fields of infrastructure development… and facilitation of entry of Indian and Russian companies in each other’s markets” were key points.
Advancing Digital Economy and Medical Cooperation
The leaders committed to promoting investments and joint projects across various sectors of the digital economy, science, and research, including educational exchanges and internships for employees of high-tech companies. They also agreed to promote systematic cooperation in the development and supply of medicines and advanced medical equipment, and to explore opening branches of Indian medical institutions in Russia. “Promotion of investments and joint projects across various sectors of digital economy” and “promotion of systematic cooperation in the development and supply of medicines” were notable aspects.
Humanitarian and Cultural Collaboration
The summit also emphasized expanding humanitarian cooperation in education, science and technology, culture, tourism, sports, healthcare, and other areas. Both sides instructed the Russian-Indian Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation to study these priority areas and assess progress at its next meeting. “Development of humanitarian cooperation, consistent expansion of interaction in the fields of education, science and technology, culture, tourism, sports, healthcare, and other areas” was part of the joint statement.
The 22nd Annual Bilateral Summit between India and Russia took place in Moscow on July 8-9, 2024. President Vladimir Putin and Prime Minister Narendra Modi discussed current issues of bilateral cooperation and the development of their strategic partnership. They focused on mutual respect, equality, and the sovereign development of both countries on a long-term, mutually beneficial basis. The summit resulted in a comprehensive joint statement detailing nine key areas of cooperation, aiming to enhance trade, economic ties, and humanitarian collaboration between the two nations.
(With inputs from PTI)
