New Delhi: Ahead of a crucial meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin, Union commerce and industry minister Piyush Goyal on Thursday said that India and Russia must work together to bring greater diversity and balance to their trade basket, underscoring the vast untapped potential in the bilateral economic partnership. “The bilateral trade between India and Russia remains heavily skewed and calls for greater balance and diversification in the trade basket,” Goyal said in an event here.
The minister also said that the India-Russia partnership is time-tested and it has stood as a testament to decades of unwavering solidarity, enduring the many uncertainties of a changing world. “I am sure we will address the trade imbalance in the near future and work collectively to eliminate, reduce and dilute trade barriers if any, work to create the right conditions to open more opportunities for businesses in both countries,” he said at the India-Russia Business Forum in the national capital.
During his address, Goyal also highlighted vast untapped opportunities for Indian exporters in sectors such as automobiles, electronics, heavy machinery, textiles and food products, as both sides work to reduce trade barriers and expand business opportunities. “We need to add more variety. And there’s so much to offer between both countries. There’s so much that we believe we can take from Russia, there’s such a large variety of offerings that 1.4 billion Indians from India have to offer to Russia that the sky’s the limit,” he said.
The minister also emphasised India’s commitment to expanding trade, strengthening institutions, and following an inclusive and sustainable development model focused on the welfare of Indians. “In bilateral trade, India and Russia had set a target of $30 billion by 2025 a decade ago, a figure that has already been surpassed at nearly twice that level,” he said, adding that India’s transformation from a ‘fragile five economy’ a decade ago to being among the top five today, soon to become the world’s third-largest GDP in the world.
Elaborating on the past government reforms, Goyal said India has undertaken bold reforms, including the goods and services tax — a single tax across the country — along with new labour codes merging 29 laws into four. “These aim to ensure better wages, higher minimum wages, greater safety, and a social security net, including for gig and contract workers. India’s young demographic, with an average age of around 28 and a half years, will remain strong for decades,” he said.
As far as trade between India and Russia is concerned, the latest data showed that merchandise trade between the two nations was worth $68.7 billion in FY25, but Indian exports to Russia remained under $5 billion while imports were close to $64 billion. An increase in Russian oil purchases, with New Delhi having little to offer in exports, has widened the trade gap.
Similarly, the data showed that engineering goods remain India’s top export to Russia at $1.3 billion in FY25, followed by electronic goods worth $862.5 million and drugs and pharmaceuticals at $577.2 million. Other major shipments include organic and inorganic chemicals, marine products, and ready-made garments.