Russian President Vladimir Putin and Prime Minister Narendra Modi unveiled a plan to boost mutual trade volume to over $100 billion by 2030 from $65 billion currently. The leaders discussed key issues of trade and supply of goods and services during Modi's two-day trip to Russia for the 22nd annual bilateral summit on July 8-9, 2024.

Both PM Modi and Russian President Vladimir Putin held talks on bilateral practical cooperation and the development of the Russia-India Special and Privileged Strategic Partnership.

Key areas touched upon during the bilateral meet included a bilateral settlement system using national currencies, elimination of non-tariff trade barriers, the launch of new routes to increase cargo turnover, trade in agricultural products, food and fertilisers, and cooperation in medicines and advanced equipment.

Here are 10 key highlights:

  • Both the governments vowed to eliminate non-tariff trade barriers related to bilateral trade between India and Russia. They decided to continue dialogue for the liberalisation of bilateral trade, including the possibility of the EAEU-India free trade area.

  • They also agreed on the development of a bilateral settlement system using national currencies, and the consistent introduction of digital financial instruments into mutual settlements.

  • The Prime Minister's Office says Russia has agreed to increase cargo turnover with India through the launch of new routes of the North-South International Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Sea Line. The optimisation of customs procedures will also be done through the application of intelligent digital systems for barrier-free movement of goods.

  • Both countries also agreed to increase the volume of bilateral trade in agricultural products, food and fertilisers. The maintenance of an intensive dialogue aimed at removing veterinary, sanitary and phytosanitary restrictions and prohibitions.

  • The pact also includes the development of cooperation in key energy sectors, including nuclear energy, oil refining and petrochemicals and expanded energy infrastructure, technologies and equipment. It will also comprise the facilitation of energy security, i.a. taking into account the prospects of global energy transition.

  • The governments will also strengthen interaction in infrastructure development, transport engineering, automobile production and shipbuilding, space and other industrial sectors. This means there will be the facilitation of entry of Indian and Russian companies in each other’s markets by creating subsidiaries and industrial clusters. Also, it’ll allow the convergence of approaches of the countries in “standardisation, metrology and conformity assessment.”

  • The other areas agreed for cooperation include the promotion of investments and joint projects across various sectors of the digital economy, science and research, educational exchanges and internships for employees of high-tech companies.

  • The countries will also promote systematic cooperation in the development and supply of medicines and advanced medical equipment. They will study the possibility of opening branches of Indian medical institutions in Russia, and recruiting qualified medical personnel as well as strengthening coordination in medical and biological safety.

  • Russia also agreed to develop humanitarian cooperation, and consistent expansion of interaction in education, science and technology, culture, tourism, sports, and healthcare.

  • Both Putin and PM Modi have instructed the Russian-Indian Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation to study the identified priority areas and to assess the progress at its next meeting.

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