Piyush Goyal pitches pharma, auto, chemicals, food to meet $100-billion India-Russia trade target by 2030

Reports coming in for today mention that Commerce and Industry Minister Piyush Goyal on September 10 called for greater diversification of India-Russia trade, identifying pharmaceuticals, engineering goods, chemicals, textiles, food products and auto products as key areas to expand non-energy commerce and help the two countries meet their $100 billion bilateral trade target by 2030.

Addressing the India-Russia Business Dialogue in New Delhi alongside Russian Minister of Industry and Trade Anton Alikhanov, Goyal stated the India-Russia relationship had “weathered seven decades of a changing world”, but what the two countries’ leaders had asked for now was “not just continuation but acceleration”.

The heads of state of the two countries have set two targets — $100 billion in bilateral trade and $50 billion in two-way investments, Goyal stated.

“The $100 billion target from a $60 billion base means a $40 billion addition in the next four years,” he stated. Achieving the target would require more than double-digit expansion year on year and efforts from governments as well as businesses, he further noted.

Goyal cited expansion in several Indian export categories to Russia.

Exports of meat products to Russia more than doubled from $36 million to $97 million, a climb of nearly 170 percent, he stated. Fish and aquatic products were up nearly 30 percent, edible vegetables rose 40 percent, while coffee, tea and spices increased 13 percent.

Products of the milling industry nearly doubled, according to Goyal.

“These are our farmers and MSME exporters, finding real growing demand in the Russia market,” he stated, adding that India had so far tapped only a small portion of its potential.

Goyal stated there was complementarity in trade between India and Russia, with products where Russia is a major importer additionally being products where India is a significant exporter globally but not yet a significant exporter to Russia.

He identified pharmaceuticals, auto components, tractors and food products among the sectors with scope for greater exports.

“Our non-energy trade in both directions stays far smaller than it should be,” Goyal stated.

“Rebalancing this trade to more diverse Indian exports such as pharma, engineering goods, chemicals, textiles, food products and auto products are central to achieving our goal,” he stated. Local-currency settlements

Goyal additionally stated India and Russia would keep strengthen local-currency settlement mechanisms.

“Payment friction more often than tariffs is what slows down trade on the ground,” he stated.

He called on businesses to finalise at least one deal before leaving Delhi and to identify a concrete project to take forward.

He additionally asked firms to add a new non-energy line to their plans, including pharmaceuticals, chemicals, auto, food, agritech, marine products and engineering goods.

“To Russian industry friends, manufacture in India, don't just sell in India,” Goyal stated, pointing to India's national industrial corridors and plug-and-play infrastructure.

“To Indian industry, go to Russia as an investor and exporter,” he further noted.

Goyal additionally asked officials on both sides to engage with industry and identify the issues blocking trade and investment, including payment systems, logistics, certificate requirements, approvals, standards and visas.

“I assure my Russian friends we stand ready to help and make the whole journey seamless and exciting,” he stated, adding that India offers scale and a rapidly expanding manufacturing base.