India to Reduce Trade Deficit with Russia
India has made over 65 non-tariff barriers, its marine exports to Russia, including the hurdles that its agricultural exports will face as it seeks to reduce the trade deficit with the country, according to reports.
While Russia has opened up to some varieties of Indian mango and bananas in the past few years, one key concern pertains to the approval of marine product units from India for shrimp exports. India’s goods exports to Russia in 2024-25 totaled $4.88 billion, of which frozen shrimp and prawns exports amounted to $123 million.
An early settlement of the non-tariff hurdles is crucial for India as it had a $59 billion trade deficit with Russia in 2024-25.
Only registered entities can supply shrimp to Russia and we have been trying to get the issue resolved. The EU has also given registration for many of our units..
Moreover, Russia, as part of the Eurasian Economic Union (EAEU), has firmed up the framework for a trade agreement with India. The EAEU comprises Russia, Belarus, Kazakhstan and Armenia.
India and the EAEU have signed the terms of reference to launch negotiations on a free trade agreement, establishing the framework and priorities for talks aimed at boosting trade and investment.
Early resolution of the non-tariff barriers is important as it will also be a good background for the trade deal negotiations and Russia is the largest member of the bloc.
Also Read: B.Bath Launches India's First 'Sensory-Safe' Skincare Range
Fixing the issue is key for diversifying India’s shrimp exports, which have been hit hard by a steep 50 percent tariff imposed by the US.
Also Read: Modi, Starmer Upbeat About Free Trade Deal
India also sees an opportunity in exporting more frozen fish meat, frozen rock lobster, sea crawfish, cuttlefish and squid to Russia, where Vietnam, Ecuador and Indonesia are some of the key suppliers.
Also Read: India, Russia Target $100 Billion Trade by 2030, Aim to Expedite FTA
In a move to reduce the trade gap, the commerce and industry ministry has reached out to industry on customs clearance and documentation challenges, freight issues in reaching Russia and banking-related difficulties, especially payment mechanisms, besides key product segments for export expansion and the possibility of joint ventures.