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After US Tariffs, Jaishankar Strongly Pushes To Boost India-Russia Trade & Investment
Facing new US tariffs, India's EAM Jaishankar makes a strong pitch to Russian businesses, urging them to invest in India's booming economy and help build a stronger, more balanced trade partnership.
Inviting Russian businesses, the EAM highlighted India's 7% growth, 'Make in India' opportunities, and the need for a "strong economic component" to the strategic partnership.
On August 20,2025: In a significant move that underscores a shift in global trade dynamics, India's External Affairs Minister, Dr. S. Jaishankar, passionately encouraged Russian companies to dramatically increase their engagement with India. This push comes just as the United States announced a steep 50% tariff on certain Indian goods, set to take effect from August 27th.
Speaking directly to business leaders, Dr. Jaishankar painted a picture of a booming India ripe with opportunity. He pointed to India's $4 trillion economy, which is growing at an impressive 7% annually, as a guaranteed source of long-term demand.
"An India with a GDP of USD 4 trillion plus growing at 7%... has an obvious need for large resources from dependable sources," he stated.
What’s in it for Russian Businesses? The Indian Offer
The Minister laid out a clear invitation, listing key areas where Russia can step in:
Assured Supplies: Need for essential products like fertilisers, chemicals, and machinery.
Infrastructure Projects: Huge business openings for companies with a proven track record to participate in India's massive infrastructure development.
Make in India: Directly benefiting from initiatives designed to welcome and encourage foreign manufacturing and investment.
Modernisation & Urbanisation:Tapping into the new demands created by changing consumer lifestyles in a modernising India.
Beyond Friendship: The Need to Fix Imbalanced Trade
Dr. Jaishankar acknowledged that while India and Russia share one of the steadiest political relationships in the world, this has not automatically translated into strong economic cooperation.
He pointed out a crucial problem: the trade relationship is both limited in variety and imbalanced, with a growing trade deficit (where India imports more from Russia than it exports).
"Both the diversification and balancing of trade now urgently mandate more strenuous efforts on our part," he emphasised.
The Way Forward: JVs, Investments & An FTA
The governments are now actively creating the conditions for businesses to thrive together. Key steps include:
Free Trade Agreement (FTA): Finalising the Terms of Reference (ToR) for a trade pact between India and the Eurasian Economic Union.
Joint Ventures (JVs) & Investments: A growing willingness to launch collaborations in key sectors where demand is already high.
Improving Connectivity: Exploring multiple routes to make trade and business travel easier.
The Bottom Line for Businesses
Dr. Jaishankar's message was clear: While governments can open doors and create frameworks, it is ultimately up to businesses to walk through them.
What we really need is for businesses to step forward confidently, he concluded, urging for close collaboration between government discussions and business plans.
This strong pitch for a deeper economic bond with Russia signals India's firm intent to diversify its trade partnerships and secure its economic growth against global headwinds, ensuring it has dependable partners for its immense future needs.
Dr.Saishankar shared on his X post...
#IndiaRussiaTrade#Jaishankar#MakeInIndia
Co-chaired an extremely productive 26th India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation IRIGC-TEC along with First DPM Denis Manturov of Russia today.
— Dr. S. Jaishankar (@DrSJaishankar) August 20, 2025
We had detailed discussions on our cooperation in a… pic.twitter.com/fJHqjjloY4
#IndiaRussiaTrade#Jaishankar#MakeInIndia
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