NEW DELHI: Commerce Secretary Sunil Bhaswal held bilateral meetings with ministers from Russia and the UAE and discussed early resolution of bilateral trade issues, officials said on Sunday.
Bhaswal held these meetings on the sidelines of the 14th BRICS (Brazil, Russia, India, China and South Africa) Trade Ministers’ Meeting in Moscow on July 26.
The Secretary-General held bilateral meetings with Russian Minister of Economic Development Maxim Reshetnikov, Commissioner for Commerce of the Eurasian Economic Commission Andrei Slepnev, Russian Deputy Minister of Industry and Trade Alexei Gruzdev and Head of the Federal Service for Veterinary and Phytosanitary Supervision of the Russian Federation (FSVPS) Sergey Dankvert.
He also met with South Africa’s Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, and the UAE’s Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi.
During these meetings, “bilateral trade issues were briefly discussed with a view to their early resolution,” the Commerce Ministry said.
The meeting with Russia is significant as the two countries aim to increase bilateral trade to $100 billion by 2030.
To boost its exports to sanctions-hit Russia and make progress towards achieving this goal, India is focusing on various sectors, including electronics, besides addressing non-trade barriers in areas such as shrimp and pharmaceuticals.
Currently, bilateral trade volume is approximately $67 billion.
India and the member states of the Russia-led Eurasian Economic Union (EEU) are also exploring opportunities to begin negotiations towards a free trade agreement.
The Eurasian Economic Union is made up of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
India-Russia trade relations have undergone a major transformation since the Ukraine war began in February 2022 and the US imposed sanctions on Russia.
Imports from Russia have surged, creating a significant trade imbalance.
Exports have grown 59% between 2020-21 and 2023-24, while imports have surged by about 8,300%.The trade deficit has also increased from $2.8 billion in 2020-21, before the war, to $57.2 billion now, think tank GTRI said in the report.
The surge in imports is solely due to India’s strategic sourcing of crude oil from Russia, influenced by favourable trade terms, and Russia’s need to find new markets under Western sanctions.
In 2023-24, India’s exports to Russia are estimated at $4.3 billion while imports, primarily due to crude oil, are estimated at $61.4 billion. The share of crude oil and petroleum products in the imports is 88 per cent.
India exports a wide range of products to Russia, including smartphones, shrimp, pharmaceuticals, meat, tiles, coffee, plane and helicopter parts, chemicals, computers and fruit.
Addressing the BRICS Trade Mini-series Meeting, Bhaswal called for strengthening the multilateral trading system with the WTO at its core, effective functioning of common value chains and greater interaction among small and medium enterprises.
BRICS is a group of the world’s leading emerging economies, accounting for more than 40% of the world’s population and over 16% of global trade.
Regarding strengthening multilateralism, the Deputy Secretary-General reiterated joint efforts to find solutions to the WTO’s long-standing challenges, particularly the development dimension and special and differential treatment.
This treatment gives special rights to developing countries.