India, Russia come closer to reviving trade corridors, bolstering economic ties

Moscow/New Delhi, Aug 23 (IANS) Amid the reshaping of the global trade order owing to tariff-led negotiations by the United States (US), the just-concluded visit of External Affairs Minister (EAM) S Jaishankar to Russia, which explored ways to further enhance economic ties while reviving trade corridors, comes at a critical juncture, a report said on Saturday.

The EAM's engagements in Moscow also set the stage for Russian President Vladimir Putin’s much-awaited visit to India at the end of the year.

During the state visit, EAM Jaishankar called for diversification of trade items that go beyond energy and raw materials. Adding that exploring the relevance of ‘Make in India’, investment, and alluring foreign business will be the key to advancing economic cooperation, according to the report by India Narrative.

Notably, “attention was brought to resume the Eurasian Economic Union (EAEU) trade talks, which were halted in 2022 following the deterioration in Russia-Ukraine relations,” said the report.

First Deputy Prime Minister Denis Manturov also said that Russia sees potential to export liquefied natural gas (LNG) to India. His comments came after the US administration imposed extra 25 per cent tariffs on India over Russian oil purchases, in a move that the Kremlin called "illegal".

According to the report, the India-Russia relations have explored trade corridors and mechanisms through which the bilateral relations continue to see an upward trend.

“In this regard, the Eastern Economic Forum, International North‑South Transport Corridor, the Chennai–Vladivostok eastern maritime corridor, and cooperation are a case in point,” it noted.

These trade corridors promise to deepen economic linkages, reduce transit times, and expand trade access across Eurasia and beyond, however, more initiatives at the bilateral level especially exploiting national policies such as ‘Samudhra Manthan’ which is a deep Ocean Mission.

Amid the global economic gravity seemingly shifting toward the Indo-Pacific, “India-Russia may also move beyond the Delhi-Moscow-centric approach and explore the regional connectivity offered by regions such as Astrakhan, Rostov-on-Don, Cochin, Port Blair, and the North East, among others, to enhance regional connectivity,” the report stressed.

Further, exploring the potential of BRICS under the National Administration and Mobilization of Entrepreneurialism (NAME), which aims to bring together the largest pools of skilled citizens and SMEs, is crucial, given India’s success in hosting startups and young entrepreneurs.

India may also reinvigorate export items that had once captured the Soviet market, such as tea, handicrafts and spices, etc.

--IANS

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