India and Russia are gearing up to solidify their strategic partnership with a series of crucial meetings this month. The primary focus of these engagements will be on deepening economic cooperation, expanding bilateral trade, and fostering scientific collaborations.
The highlight of the meetings will be the Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation (IGC-TEC) meeting scheduled for November 12th in New Delhi. This meeting, co-chaired by Russian Deputy Prime Minister Denis Manturov and India’s External Affairs Minister S. Jaishankar, serves as a vital platform for overseeing the progress of India-Russia bilateral economic cooperation.
The IGC-TEC meeting will be preceded by the India-Russia Business Forum in Mumbai on November 11th. This forum, organized by the Business Council for Cooperation with India and the Federation of Indian Chambers of Commerce and Industry (FICCI), will bring together key stakeholders from both nations to discuss and explore opportunities for enhanced industrial cooperation, financial collaborations, digital technologies, and logistics partnerships.
The IGC-TEC meeting, established in 1992, serves as a cornerstone for India-Russia bilateral economic cooperation. It has been instrumental in monitoring progress in areas such as trade, investment, and cultural exchanges. The discussions on November 12th are expected to delve into a range of significant topics, including:
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Improving Bilateral Payment Mechanisms:
Facilitation of smoother cross-border transactions is a key agenda item, with an emphasis on streamlining payment processes to support a more balanced trade relationship.*
Expanding Trade Settlements in National Currencies:
The meetings will address the shift towards settling trade transactions in national currencies, reducing reliance on third-party currencies and enhancing financial autonomy.*
Advancing a Joint Venture with Russia’s Transmashholding (TMH) to Build Vande Bharat Trains:
This joint venture aims to strengthen the strategic partnership in infrastructure development, with a particular focus on high-speed rail technology.Beyond these key topics, connectivity and strategic economic initiatives are also set to be discussed. The IGC-TEC boasts a robust structure for collaboration, with dedicated working groups focused on economic, scientific, and financial issues. These working groups cover a wide range of areas, including civil aviation, energy, mining, tourism, IT, and banking, fostering comprehensive cooperation across various sectors.
The upcoming meetings come at a critical juncture as India and Russia strive to achieve their ambitious trade target of $100 billion by 2030. Currently, India’s exports to Russia stand at just under $5 billion, creating a trade imbalance within the total trade volume of $65.7 billion recorded for 2023-24. India is keen to address this imbalance and diversify its economic engagement with Russia.
The meetings follow the recent BRICS Summit in Kazan, Russia, attended by Prime Minister Narendra Modi under Russia’s BRICS presidency. During the summit, Modi reiterated India’s commitment to promoting global dialogue and cybersecurity, emphasizing the need for global regulations for safe and secure AI. He also underscored India’s commitment to dialogue and cooperation on international issues, including anti-terrorism efforts. This visit to Russia further exemplifies Modi’s dedication to strengthening diplomatic ties between the two nations. He previously attended the India-Russia Annual Summit, where he was awarded the “Order of Saint Andrew the Apostle” for his contribution to fostering Indo-Russian relations.
As the India-Russia trade and cooperation framework expands, both nations are poised to strengthen their strategic partnerships and address existing challenges within their economic and technological collaboration. These meetings offer a crucial platform for achieving the ambitious goals of both nations and solidifying their bond on the global stage.
