In response to the US imposing a 50 percent tariff on goods from India, External Affairs Minister S Jaishankar called for stronger trade ties with Moscow, urging Russian businesses to collaborate "more intensively" with Indian counterparts.

While in Moscow with Russia's First Deputy Prime Minister Denis Manturov, Jaishankar emphasized the need for both nations to broaden their trade portfolio and develop joint ventures. "Our motto should be to engage more and differently," he stated in his opening remarks.

The External Affairs Minister announced that the commission had completed the terms of reference for the Free Trade Agreement (FTA) during the discussions in Moscow, calling it a significant advancement.

Trade between India and Russia has surged more than five times over the last four years, rising from $13 billion in 2021 to $68 billion in 2024-25, primarily driven by Indian imports of Russian energy resources. The Russian Embassy in New Delhi has estimated this growth at 700 percent over the last five years.

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However, Jaishankar pointed out the growing trade imbalance. India’s trade deficit with Russia, which was $6.6 billion in 2021, has increased to nearly $59 billion.

 

"Addressing this urgently is essential," he said, encouraging Moscow to open its markets further to Indian exports.

During the India-Russia Business Forum later in the day, Jaishankar urged Russian companies to make investments and explore new business opportunities with Indian partners. "A sustained strategic partnership needs a robust and enduring economic aspect. In this regard, I called on our businesses to increase trade, consider more investments, establish joint ventures, and explore new areas of economic collaboration," he shared on X after the discussions.

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The minister urged both parties to move beyond "the traditional path" by diversifying their trade portfolio, establishing measurable goals and timelines, and strengthening the connection between the business forum and IRIGC working groups.

These discussions occurred amidst heightened tensions in India-US relations after President Donald Trump increased tariffs on Indian goods to 50 percent, which included an additional 25 percent tax as a penalty for India's continued imports of Russian crude oil.

According to the White House, this action aimed to pressure Moscow by limiting its trade associations.

Without specifically referring to the decision made in Washington, Jaishankar acknowledged that the conversations were happening "in the context of a complex geopolitical environment," while emphasizing that New Delhi and Moscow continue to maintain "close and regular engagement" at leadership levels.