India-Russia target $100 billion trade by 2030; BIT fast-tracked as Goyal eyes pharma, textiles and auto exports

Commerce and industry minister Piyush Goyal on Thursday identified pharmaceuticals, textiles, engineering goods, food products, chemicals and auto products as key areas to expand non-energy trade with Russia and help the two countries meet their $100 billion bilateral trade target by 2030.

At the India-Russia Business Dialogue, he also said the India-Russia priority investment projects mechanism is now tracking 40 live investment projects across advanced manufacturing, energy, mining, railways and emerging technologies. India, he said, is fast-tracking a new bilateral investment treaty (BIT) to give investors on both sides the legal certainty that projects and businesses look for when they finalise investment destinations.

Goyal also said India and Russia would continue to strengthen local currency settlement mechanisms. "Payment friction more often than tariffs is what slows down trade on the ground," he said.

Highlighting that the India-Russia relationship had "weathered seven decades of a changing world", the minister said, "But what our leaders have asked of us now is not just continuity, it is acceleration."

The leaders of the two countries have set two targets, $100 billion in bilateral trade and $50 billion in two-way investments, Goyal said.

"The $100 billion target from a $60 billion base means a $40 billion addition in the next four years," he said, adding that the target would require more than double-digit growth year-on-year and "significant effort from both sides, not just from government, but equally from our businesses".

He also asked companies to add a new non-energy line to their plans, including pharmaceuticals, chemicals, auto, food, agritech, marine products and engineering goods.

"To Russian industry friends, manufacture in India, don't just sell in India," Goyal said, pointing to India's national industrial corridors and plug-and-play infrastructure. "To Indian industry, go to Russia as an investor and exporter," he added.

The minister also asked officials on both sides to engage with industry and identify the issues blocking trade and investment, including payment systems, logistics, certificate requirements, approvals, standards and visas.

"I assure my Russian friends we stand ready to help and make the whole journey seamless and exciting," Goyal said, adding that India offers scale and a rapidly expanding manufacturing base.

Export potential

Citing growth in India's exports to Russia in several categories, he said, without specifying the time period, exports of meat products to Russia more than doubled to $97 million from $36 million, nearly 170% increase, while those of fish and aquatic products were up nearly 30%, edible vegetables rose 40% and coffee, tea and spices went up 13%.

Exports of the milling industry nearly doubled, according to Goyal. "These are our farmers and MSME (micro, small and medium enterprises) exporters, finding real growing demand in the Russia market," he said, adding that India had so far tapped only a small portion of the potential. Goyal said there was complementarity in trade between India and Russia but "our non-energy trade in both directions remains far smaller than it should be".