Jaishankar Highlights Tariff Hurdles, Urges Swift India-Eurasian Trade Pact in Moscow

Quick Summary

• External Affairs Minister S. Jaishankar attended the 26th Session of the India-Russia Inter-Government Commission for Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) in Moscow on August 20, 2025.
• The meeting addressed trade imbalances and obstacles such as tariff/non-tariff barriers, logistics bottlenecks, connectivity, and payment mechanisms between both nations.
• Mr. Jaishankar emphasized the importance of concluding a Free Trade Agreement (FTA) between india and eurasian countries to promote smoother overland trade and connectivity through key corridors like the Chennai-Vladivostok Corridor.
• India-Russia trade has surged exponentially from $13 billion in 2021 to $68 billion in 2024-25 due to an increase in hydrocarbon imports following western sanctions on Russia. However, this has led to a significant imbalance with a current deficit of $58.9 billion for India.
• Russia remains committed to facilitating deeper economic integration via initiatives like the proposed India-Eurasian Economic Union FTA.

Indian Opinion Analysis

India’s engagement at IRIGC-TEC underscores its persistent diplomatic efforts amidst changing global dynamics marked by sanctions on Russia and U.S.-India trade tensions over tariffs imposed by President Donald Trump. While the surge in bilateral commerce reflects enhanced cooperation driven largely by energy imports from Russia post-sanctions fallout, it simultaneously raises concern about india’s growing trade deficit.

Mr.Jaishankar’s call for addressing barriers such as logistics inefficiencies and payment mechanisms suggests that systemic issues persist despite high trading volumes.The push for early FTA finalization within Eurasia highlights India’s ambition to diversify its avenues for economic partnership beyond conventional allies while promoting regional connectivity through strategic infrastructure corridors.

Resolving these disparities could enhance mutual trust but will require focused policy coordination balancing geopolitical interests with pragmatic economic growth goals for both nations amid complex international circumstances.

Read More: The hindu