Insight Bureau: Amidst sweeping international sanctions on Russia for invading Ukraine, India is planning to boost shipments to Russia by an additional $2 billion as the two nations work out a payment system in local currencies to continue bilateral trade.
To make the trade successful, the Modi’s administration is in talks with Moscow to make market access free for Indian-made products. The government of both the countries are working for the proposal to settle the transaction in rupees and rubles and are looking for ways to balance the trade given that India is a net importer of Russian goods.
Pharmaceutical products, plastics, organic and inorganic chemicals, home furnishings, rice, beverages such as tea and coffee, milk products, and bovine products are some of the goods on the long list of export.
As compared to the $8.1 billion record for the previous full-year, the total bilateral trade between the two countries stood at $11.8 billion in the first 11 months starting April 2021, a huge jump from 2020.
India is seeking to send some more items to Russia such as marine products, textiles and apparel, footwear, machinery, and electronics among many others.
India is facing severe criticism for lifting imports of oil to take advantage of a dip in prices after U.S., Europe, Australia and Japan piled economic sanctions onto Russia in response to its war against Ukraine.
Since the Russian invasion in Ukraine, India has maintained a neutral stance on the sanctions made against the country and on tensions between major powers, even as it has joined groups such as the Quad security alliance with Australia, Japan and the U.S.