India and Russia: India has appealed to Russia to remove trade barriers on Indian goods such as electronics items, engineering goods, food items and fish products. India is very strong in these sectors and their demand in Russia is also very high. In such a situation, the only way is to increase exports.
Trade between India and Russia is done on a large scale, but it is not balanced. Indian oil companies purchased large quantities of crude oil from Russia and paid its prices in rubles. In such a situation, rubles worth 50-55 billion dollars have been deposited in the bank accounts of Russia. They are not being used fully. India wants Russia to increase imports from India and pay the price for goods in rubles. With this, business between the two will be balanced.
Where is the problem coming from?
According to a Times of India report, Indian exporters face many challenges to increase their access to the Russian market. Exporters are facing difficulties in the electronics sector due to Russia’s own strict regulations, which include mandatory localization of software and compliance with Russian cyber security regulations.
Shipments of engineering goods are also being delayed due to Russia’s own strict product standards and certification processes. Additionally, compliance with Russian-language documentation for food goods, fisheries and some machinery categories has further slowed exports.
increasing trade deficit between the two
This is why India has raised this issue with Russia to ensure balanced trade with Russia and ease of access of Indian goods to Russian markets. India has a huge trade deficit with Russia. This means that exports have not been as high as the imports have been.
In the first seven months of the current financial year, India’s trade deficit has reached approximately $25 billion, which is mostly due to the import of crude oil. Meanwhile, due to US sanctions, some Indian refiners have reduced the purchase of crude oil from Russia. Meanwhile, some suppliers came forward to meet India’s needs, due to which this trade deficit has reduced to some extent.
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