Big Question: How can both Russia and India improve trade deficit?
India and Russia are looking to raise bilateral trade to $100 billion by 2030, balance the lopsided trade, eliminate non-tariff trade barriers, and explore the possibility of a Eurasian Economic Union (EAEU)-India Free Trade Area.
India’s bilateral trade with Russia stood at $65.6 billion in FY24, up 33 per cent year-on-year, and nearly 5.5 times higher than the pre-pandemic trade of $10.1 billion. The bilateral trade has increased especially since 2022 with Indian fuel importers snapping up discounted Russian crude despite repeated criticism by Western nations.
I'd expect most of whatever starts out on the "standard route" to end up in those nearer EU countries. That's just from a naive trade theory perspective, though.
This won't be forever. Russia and India are planning a train+road route to Oran and from there goods will be shipped to Mumbai port. (See the red line)
It is very difficult for us Europeans and Americans to admit that the growth of the future could take place in this area if we do not return to market economy principles and open markets. But it is happening before our eyes and it will happen without the dollar and without the euro.
I think that this conciliation of both countries is good and will generate gains and benefits for both economies... with a view to a not too distant future because we are talking about results in less than 10 years... so it is something quite ambitious and that I'm sure it will be successful 👍