India's Jaishankar encourages Russian companies to engage 'more intensively' with India
KATHMANDU: India's External Affairs Minister S Jaishankar has urged Russian companies to engage more intensively with their Indian counterparts, as the United States imposes 50% tariff on Indian goods.
Speaking on the sidelines of a bilateral forum, Jaishankar highlighted India’s rapidly growing economy and initiatives such as ‘Make in India’ that have opened new windows for foreign investment, ANI reported.
“India, with a GDP of $4 trillion plus, growing at 7% for the foreseeable future, has an obvious need for large resources from dependable sources. In some cases, it could obtain assured supplies of essential products, fertiliser, chemicals and machinery, which are good examples. Its rapidly growing infrastructure offers business openings to enterprises with an established track record in their own country,” he said.
He added that the modernisation and urbanisation of India create fresh demands driven by shifts in consumption and lifestyle. “Each of these dimensions represents an invitation for Russian companies to engage more intensively with their Indian counterparts. Our endeavour is to encourage them to rise to that challenge.”
Jaishankar noted that although India and Russia have one of the steadiest relationships among major nations, this has not automatically translated into significant economic cooperation. “Our trade basket remains limited and, until recently, so did our trade volume. It may have grown in recent years, but so too has the trade deficit. Both the diversification and balancing of trade now urgently mandate more strenuous efforts.”
He emphasised the need for stronger economic ties to achieve and sustain higher trade targets, and he expressed India’s willingness to explore further investments, joint ventures and other collaborations. “What we seek to do as governments is provide the guidance and create conditions for economic activities to take place. Clearly much centres around trade, but there is growing willingness to contemplate more investments, joint ventures and other forms of collaboration.”
On the India–Eurasian Economic Union free trade agreement, Jaishankar revealed that the two sides have concluded the Terms of Reference for an FTA, which “will surely make a difference when concluded. We spoke about motivating joint ventures in key areas where demand is already established. Some initiatives of significant investment levels were also discussed. Our skilling and mobility endeavours have started to take off, and the desire to improve connectivity is expressed through multiple options.”
He concluded by urging businesses to step forward confidently and to align closely with governmental discussions.
Jaishankar’s remarks come after the US levied an ad valorem duty of 25% on Indian goods and announced an additional 25% tariff, effective from August 27, bringing the total duty to 50%.
