India, Russia Aim for $100 Billion Trade Target by 2030

At the 22nd yearly summit between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi in Moscow, India and Russia announced a plan to improve their strategic economic cooperation. This is a big deal. This move comes at a time when trade between the two countries is growing quickly. The two countries have set the lofty goal of trading $100 billion worth of goods by 2030.

Expansion of Trade and Investments

The leaders signed nine Memorandums of Understanding (MoUs), which focused on different areas. One of the most important agreements was one to boost trade and joint business projects in Russia’s Far East, which was said to be a key area because of its wealth of resources. The deals also aim to make the most of opportunities by building the Vladivostok-Chennai corridor, speeding up the integration of the International North-South Transport Corridor (INSTC), and making the most of the Northern Sea Route.

Technological and Financial Integration

Adopting digital financial assets and making a two-way settlement system that uses national currencies are important parts of economic cooperation. These could help balance out the effects of Russia’s exclusion from SWIFT. The RuPay and MiR card systems of India and Russia are also recognized by each other as part of this strategic financial union. This makes it easier and faster to send money between the two countries.

Energy and Resource Collaboration

The deals show that countries are working together more closely in important energy areas, such as nuclear energy. Increasing the flow of coking and anthracite coal from Russia to India was also talked about. This would improve India’s energy security and meet industry needs.

Focus on Arctic and Eurasian Connectivity

Indian and Russian leaders have agreed to help build and open up shipping paths through the Arctic’s Northern Sea Route. This is meant to increase trade and make Eurasia’s transportation routes more stable. As part of the partnership, stable supply and demand chains are being set up across the area. This is seen as a possible counterbalance to Chinese efforts in Eurasia by experts.

Month: Current Affairs - July, 2024

Category: Economy & Banking Current Affairs - 2024