Amid escalating US tariffs on Indian goods, External Affairs Minister S Jaishankar has urged Russian companies to strengthen their engagement with India and explore new trade and investment opportunities. Speaking in Moscow, Mr Jaishankar highlighted India’s rapidly growing economy, ‘Make in India’ initiatives, and modernisation efforts as major drivers for collaboration.

“India, with a GDP of over USD 4 trillion and growing at 7% for the foreseeable future, has a significant need for large and dependable resources. From assured supplies of essentials like fertilisers and chemicals to machinery and infrastructure development, there is enormous scope for partnership,” he said.

Mr Jaishankar emphasized that initiatives like ‘Make in India’ have created new avenues for foreign enterprises, while India’s urbanisation and lifestyle shifts are generating fresh demand. “Each of these dimensions represents an invitation for Russian companies to engage more intensively with their Indian counterparts,” he added, calling for stronger economic engagement to sustain and expand bilateral trade.

Acknowledging that India and Russia share one of the steadiest strategic relationships among major nations, Jaishankar noted that economic cooperation has not kept pace. “Our trade basket remains limited and, despite recent growth, so does our trade volume. The trade deficit has widened, making diversification and balance imperative. These are essential not only to achieve higher trade targets but also to sustain current levels,” he said.

The minister also announced the conclusion of the Terms of Reference (ToR) for a Free Trade Agreement between India and the Eurasian Economic Union, which is expected to boost bilateral trade significantly. He encouraged Russian businesses to explore investments, joint ventures, and collaborations in key sectors where demand is growing.

“What we need now is for businesses to step forward confidently and align their plans with government-level discussions. An enduring strategic partnership must be backed by a strong and sustainable economic component,” he stressed.

Jaishankar’s outreach comes as the US has increased tariffs on Indian goods to 50%, following an additional 25% ad valorem duty that will take effect on August 27. The move has intensified India’s efforts to diversify trade partnerships and reduce reliance on Western markets.