Modi cites opportunities, Putin commits to reduce trade deficit at India-Russia Business Forum

By Anjali Sharma

WASHINGTON – Prime Minister Narendra Modi on Friday expressed his gratitude to President Putin for his initiative to bring a large delegation to the India-Russia business forum.

Russian President Vladimir Putin and PM Narendra Modi took part in the plenary session of the India-Russia Business Forum in Delhi.

The forum, co-organized by the Federation of Indian Chambers of Commerce and Industry and Roscongress Foundation, brought together leaders of the two countries to “promote multifaceted Russian-Indian cooperation in imports and exports, finance and investments.”

Modi expressed his gratitude to President Putin for his initiative to bring a large delegation to the event, noting that mutual trust is the greatest strength of the India-Russia partnership.

“Be it business or diplomacy, the foundation of any partnership is mutual trust. This trust is the greatest strength of India-Russia relations. It gives direction and momentum to our joint efforts…,” Modi remarked.

He highlighted the opportunities in India’s defence and space sectors after his government opened these for private investments.

Modi also announced that India would allow the private sector into its civil nuclear sector in a major reform aimed at achieving his developed India goal.

“Defence and space have been opened to the private sector. This has created new opportunities in these sectors. Now we are going to open the door to new possibilities in the civil nuclear sector as well. This is not just administrative reform, but mindset reform. The only resolve behind these reforms is a developed India,” Modi said.

He also shared new ideas furthering India-Russia cooperation in the area of logistics and connectivity.

“In today’s meeting, President Putin and I emphasized realizing the full potential of our connectivity. We are committed to moving forward on the INSTC, or the Northern Sea Route, i.e., the Chennai-Vladivostok Corridor. Progress will be made in this direction soon. This will reduce transit times, lower costs, and open up new markets for businesses.”

“With the power of digital technology, we can connect customs, logistics, and regulatory systems through virtual trade corridors. This will speed up customs clearance, reduce paperwork, and make cargo movement more seamless…,” he added.

India and Russia have set a goal of exceeding bilateral trade to USD 100 billion by 2030. Prime Minister Modi expressed optimism that this target would be achieved even before 2030.

“From my conversations with President Putin since yesterday, and the potential we see, I don’t think we’ll have to wait until 2030. We are moving forward with determination to achieve that goal ahead of schedule, and my confidence is growing,” he said.

Modi claimed that the speed and scale of “change” India has achieved under his 11 years of rule is unprecedented.

“Following the principle of reform, perform, and transform, India is rapidly moving towards becoming the world’s third-largest economy. Our resolve is stronger than ever, and we are moving forward with great confidence and at a rapid pace towards our goals. Next-generation reforms in GST and reduction in compliance are steps taken to promote ease of doing business,” he stated.

President Vladimir Putin highlighted the importance of the India-Russia Business Forum said these engagements have allowed business leaders of the two countries to build new contacts and initiate talks on future commercial deals, and launch forward-looking, mutually beneficial projects.

He said the Russian delegation has not come to India to discuss only energy and sign oil and gas deals but to develop multifaceted relations with India in many spheres.

The India-Russia Business Forum, Putin said, “is devoted to the possibilities of the Indian economy and aims to inform our economic operators about these opportunities, so that we can open up our markets to mutual satisfaction and mutual development.”

He noted that Indian manufacturing and light industries, its IT sector, and the pharmaceutical industry are among the world’s leaders, Putin said that Russia is carefully analyzing India’s experience and uses it in implementing our national programmes for import substitution and localization of production of high-value-added products.

“The governments of both countries, along with the Prime Minister and me, are paying close attention to deepening Russia-India multifaceted economic ties. Following today’s talks, we adopted a Programme for Expanding Russian-Indian Economic Cooperation. This comprehensive document is aimed at achieving the goal that Mr Modi and I set to bring trade to USD 100 billion by 2030,” he said.

He called upon the business communities from both countries to do their best to expand and diversify trade and to form a balanced configuration of reciprocal trade, Putin said Moscow is willing to multiply imports of Indian goods and services to reduce the trade deficit.

“Trade surplus in Russia’s favour is quite large. Russian businesses and companies are willing to multiply imports of Indian goods and services. Friends, we welcome this, as it helps make our economy more resilient,” he said.

Putin added, “It makes good economic sense to prioritize projects to increase Indian imports to Russia as part of the new export support programme recently adopted by Mr Modi’s government.”