New Delhi/Moscow: Prime Minister Narendra Modi and Russian President Vladimir Putin inked an agreement covering energy grains and more which is expected to boost bilateral trade helping it to cross the $100 billion mark by 2030, according to an official statement after the 22nd Annula Bilateral Summit.
Nine areas of cooperation
PM Modi and Russian President Putin agreed to cooperate in nine areas, namely:
Trade
Trade settlement using national currencies
Increased cargo turnover via new routes
Raising trade volume agri, food and fertiliser
Deeper energy cooperation, including nuclear energy
Strengthen interaction over infrast development
Investment promotion
Promoting joint projects in the digital economy
Collaboration related to medicine supplies and developing humanitarian cooperation
Impetus for Free trade between India and Russia
PM Modi and Russian President Putin agreed to remove non-tariff trade barriers between the 2 countries and conduct dialogues to liberalise free trade. This may lead to the formation of a Eurasian Economic Union-India Free Trade Area, according to the joint statement.
Rupee-ruble trade
Among the most important aspects of the agreement was the clause on bilateral currency trade, which is likely to provide impetus to rupee-based payments. India had already opened the rupee vostro payments system for settlement of trade in rupees with an eye on Russia after the Russia-Ukraine War began and the West imposed major sanctions on Russia. India took advantage of the boycott of Russian oil by ensuring supplies of Ural crude to keep domestic fuel prices in check,
India-Russia energy and agricultural cooperation
With India’s energy consumption expected to rise further in the coming decades on account of it being the world’s most populous country and driven by a rise in economic activity, PM Modi and President Putin agreed to ensure deeper energy cooperation including in the field of nuclear energy. In the agricultural domain, India thanked Russia for ita supply of fertilisers amid a global price rise in the price of the essential commodity. The agreement is also likely to boost wheat supplies form Russia, which is among the largest producers of the commodity with Ukraine, Sunflower oil supplies, another domain in which Russia and ukraien lead, may also be ensured by the agreement, helping the Indian government’s bid to control inflation in an uncertain global economic environment.
Prime Minister Narendra Modi and Russian President Vladimir Putin agreed to expand bilateral cooperation in 9 domains to ensure that bilateral trade crosses the $10 billion mark by 2030, Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
