Why is India pressing Russia to ease trade barriers?

India is pushing to lower trade barriers to utilize an estimated $50-55 billion in roubles accumulated due to a trade imbalance, primarily from oil imports.

What specific goods is India trying to export more of to Russia?

India is focusing on easing trade for electronics, engineering goods, food products, and fisheries.

What are the main obstacles for Indian exporters in Russia?

Obstacles include stringent Russian and Eurasian standards, software-related requirements for electronics, and local language compliance.

Home / Business and Economy / India Pushes Russia on Trade Barriers for $50B Rouble Funds

India Pushes Russia on Trade Barriers for $50B Rouble Funds

4 Jan

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Summary

India seeks to ease trade barriers for electronics and engineering goods.
Russia holds $50-55 billion in roubles due to India's trade deficit.
Trade talks precede agreement with Eurasian Economic Union next month.

India Pushes Russia on Trade Barriers for $50B Rouble Funds

India is actively engaged in high-level discussions with Russia to dismantle trade barriers that are hindering the export of Indian goods. The primary objective is to unlock the estimated $50-55 billion in roubles currently held in Russian banks, a consequence of India's substantial trade deficit with Russia, largely fueled by crude oil imports. Current challenges include complex Russian and Eurasian standards for engineering goods and specific software requirements for electronics.

Exporters report difficulties in meeting local language compliance and navigating differing standards, which are impeding the flow of products. Despite these obstacles, Russian retail chains have expressed interest in importing Indian food and other consumer goods. The trade imbalance is expected to narrow as some Russian oil companies face sanctions and Indian refiners adjust their purchasing strategies.