External Affairs Minister S Jaishankar Emphasizes Urgent Rebalancing of India-Russia Trade Deficit

External Affairs Minister S Jaishankar has called for urgent steps to rebalance bilateral trade between India and Russia as the trade deficit widened to over $50 billion for 2025-26, up from $6.6 billion five years earlier.

Speaking at the 27th session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) in Moscow on Monday, Jaishankar stated that addressing the trade imbalance is a foremost priority.

Bilateral goods trade has quadrupled to nearly $60 billion in FY26. However, the growth remains heavily skewed. India's imports from Russia stand at $55.3 billion, largely driven by oil, while India's exports are limited to $4.5 billion.

Jaishankar noted that progress on market access, the removal of tariff and non-tariff barriers, strengthening payment mechanisms, and fostering deeper business-to-business engagement will be critical. These measures are necessary to address the imbalance and achieve the shared objective of reaching $100 billion in bilateral trade by 2030.

During his two-day visit to Moscow, which concluded on Monday, Jaishankar held high-level meetings, including discussions with Russian President Vladimir Putin. The talks covered broader strategic partnerships as well as economic and trade ties. The visit took place amid threats from the US concerning possible economic sanctions for continuing crude oil trade with Moscow.

Russian counterparts emphasized cooperation across various domains, including energy, nuclear, metallurgy, space, railways, fertilisers, skill mobility, connectivity, and payment mechanisms. Jaishankar reciprocated this focus and suggested that both countries take stock of negotiations regarding the proposed India-Eurasian Economic Union (EaEU) Free Trade Agreement.

Addressing the IRIGC-TEC mechanism, Jaishankar proposed a greater focus on implementation and outcomes, asking working groups and sub-groups to prioritize specific deliverables ahead of the next session. He also underscored the importance of closer engagement with enterprises, noting that while governments build enabling frameworks, businesses drive trade, investment, innovation, and job creation.

"The widening trade deficit between India and Russia highlights a critical operational challenge in bilateral commerce that requires deliberate structural adjustments. For businesses engaged in cross-border trade, heavy import concentration in sectors like energy necessitates exploring new export avenues, enhancing market access, and establishing reliable payment mechanisms. Achieving a balanced economic corridor will depend heavily on active business-to-business engagement and the practical removal of tariff and non-tariff barriers." — Dr. Shishir Gupta, Founder & CEO, StartupLanes