Commerce Minister Sunil Barthwal meets Russian, UAE ministers on trade issues
During these meetings, bilateral trade issues were briefly discussed so that they could be resolved as soon as possible, the Ministry of Commerce said.
Commerce Minister Sunil Barthwal has held bilateral meetings with Russian and UAE ministers to discuss bilateral trade issues and resolve them as soon as possible, an official said on Sunday.
Barthwal held these meetings on the sidelines of the 14th meeting of the trade ministers of the BRICS countries (Brazil, Russia, India, China and South Africa) in Moscow on July 26.
The Secretary held bilateral meetings with Russian Minister of Economic Development Maxim Reshetnikov; Member of the Board (Minister) of Trade of the Eurasian Economic Commission Andrey Slepnev; Russian Deputy Minister of Industry and Trade Alexey Gruzdev; Head of the FSVPS (Federal Service for Veterinary and Phytosanitary Supervision) of the Russian Federation Sergei Dankvert.
He also met with South African Deputy Minister for Trade, Industry and Competition Zuko Godlimpi and UAE Minister of State for Foreign Trade Thani Bin Ahmed Al Zeyoudi.
During these meetings, bilateral trade issues were briefly discussed so that they could be resolved as soon as possible, the Ministry of Commerce said.
The meetings with Russia are important because both countries want to increase bilateral trade to $100 billion by 2030.
India is focusing on various sectors, such as electronics, and is also addressing issues around non-trade barriers in areas such as shrimp and pharmaceuticals. With this, India aims to boost exports to sanctions-hit Russia and thus bring this objective closer.
Currently, bilateral trade amounts to about $67 billion.
India and members of the Russia-led Eurasian Economic Union (EEU) are also exploring the possibility of starting negotiations on a free trade agreement.
The Eurasian Economic Union consists of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
Since the start of the war in Ukraine in February 2022 and US sanctions against Russia, the trade relationship between India and Russia has changed significantly.
Imports from Russia have increased sharply, leading to a significant trade deficit.
Exports grew 59 percent in fiscal years 2020-21 and 2023-24, while imports rose about 8,300 percent, the report said. The trade deficit also widened to $57.2 billion now from $2.8 billion before the war in 2020-21, think-tank GTRI said in its report.
The increase in imports is solely due to India’s strategic sourcing of crude oil from Russia, influenced by favourable trade terms and Russia’s need to find new markets amid Western sanctions.
In 2023-24, India’s exports to Russia stood at $4.3 billion, while imports driven by crude oil stood at $61.4 billion. The share of crude oil and petroleum products in imports was 88 per cent.
India exports a wide range of products to Russia, including smartphones, shrimp, medicines, meat, tiles, coffee, aircraft and helicopter parts, chemicals, computers and fruits.
During the miniseries on BRICS trade, Barthwal called for strengthening the multilateral trading system with the WTO (World Trade Organization) at its core, effective functioning of joint value chains and expanding interaction between SMEs.
The BRICS are a group of major emerging economies in the world. They comprise more than 40 percent of the world’s population and account for more than 16 percent of world trade.
On strengthening multilateralism, the Secretary reiterated joint efforts to resolve the WTO’s long-standing mandate issues, in particular the development aspect and special and differential treatment.
This treatment gives developing countries special rights.
He stressed the urgent need to resolve the issues, including a permanent solution to public shareholding and the establishment of a two-tier dispute resolution system.
He stressed that WTO reforms should be based on the principles and objectives of the WTO. This should lead to a better response to the development needs of emerging economies and to a strengthening of the WTO through the ’30 for 30′ programme, whereby at least 30 operational improvements will be implemented in the WTO by the time the organisation reaches its 30th anniversary in 2025.
He also stated that collaboration is essential to create access to affordable, emerging technologies that are critical to the green transition and climate resilience.
Regarding unilateral climate measures that have an impact on trade, the Minister of Trade expressed his concern that such measures invalidate rights and obligations under specialised multilateral environmental agreements and the NDC (Nationally Determined Contributions) principles. Furthermore, they ignore the CBDR (Common but Differentiated Responsibilities) principles.
According to Barthwal, it is important for SMEs to focus on key areas such as exploring collaboration in the form of research and development, technology transfer and joint ventures, as well as business development opportunities.
He added that India is ready to share its experiences with the BRICS countries in the e-revolution in the areas of payments, e-commerce, national identity, banking and education.
(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First print: Jul 28, 2024 | 3:30 PM IST