India’s Balancing Act: Jaishankar Eyes Stronger Russia Links Amid US Tariffs

Jaishankar Pushes Stronger Russia Trade Ties as Deficit Widens, US Tariffs Bite.

External Affairs Minister S. Jaishankar on Wednesday urged deeper Russian corporate engagement with India, warning that tariff and non-tariff hurdles could stall momentum in bilateral trade.

At the 26th session of the India-Russia Inter-Government Commission (IRIGC-TEC) in Moscow, co-chaired with Russian Deputy Prime Minister Denis Manturov, Jaishankar underlined the urgency of finalising a Free Trade Agreement (FTA) with the Eurasian Economic Union. The commission agreed on the terms of reference for the FTA.

He highlighted priority issues—removing trade barriers, improving logistics, promoting connectivity through the North-South Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok link, and creating reliable payment systems.

Surging Trade, Rising Deficit

India-Russia trade has jumped from USD 13 billion in 2021 to USD 68 billion in 2024-25, largely driven by Indian imports of Russian hydrocarbons. But the trade deficit has ballooned to nearly USD 59 billion, from just USD 6.6 billion in 2021. Jaishankar called on Moscow to open its market wider for Indian exports.

Call for Innovation

At the India-Russia Business Forum, Jaishankar urged companies to invest, form joint ventures and expand cooperation. “Doing more and doing differently should be our mantras,” he said, pressing for diversification of trade and measurable outcomes before the next commission meeting.

US Tariffs Cloud Talks

The discussions came as US President Donald Trump doubled tariffs on Indian goods to 50 per cent, including an additional levy tied to India’s continued purchase of Russian oil. While avoiding direct reference to Washington, Jaishankar admitted the talks were taking place amid a “complex geopolitical situation” but stressed India and Russia remained closely engaged at the leadership level.

Jaishankar is on a three-day visit to Moscow aimed at strengthening what both sides continue to call a “time-tested” strategic partnership.