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India Raises Concerns Over Non-Tariff Barriers in Pharma and other industries with Russia

During Prime Minister Modi's visit to Moscow, discussions were held to deepen trade ties, set a bilateral trade target of $100 billion by 2030, and initiate negotiations for a trade agreement with the Russia-led Eurasian Economic Union (EEU).

• By Pooja Chaturvedi Sah
• New Delhi
• Jul 16, 2024

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India has raised issues with the Russian government concerning non-tariff barriers (NTBs) that are hindering its exporters, said commerce secretary Sunil Barthwal. These barriers are primarily affecting sectors such as pharmaceuticals and marine products. 

Efforts to Address NTBs

“We are addressing these challenges in various forums. Our aim is to secure better market access and resolve non-tariff barriers in sectors like marine products and pharmaceuticals,” Barthwal informed reporters, noting that a visit to Moscow is being planned. 

Setting Ambitious Trade Goals

This statement comes after setting a goal to increase bilateral trade to $100 billion by 2030, from the current level of over $67 billion. This target was set during Prime Minister Narendra Modi’s recent discussions with Russian President Vladimir Putin. 

“We aim to boost overall trade volume with Russia, focusing on commodities like electronics, engineering goods, and other items where trade potential is high,” Barthwal stated. 

Trade Growth and Concerns

Trade between India and Russia has grown significantly over the past two financial years, largely driven by increased oil imports from Russia following the Ukraine conflict in February 2022. However, this has led to one of India's largest trade deficits, raising concerns about an "imbalanced trade" relationship. 

High-Level Meetings and Trade Agreements

During Prime Minister Modi's visit to Moscow, discussions were held to deepen trade ties, set a bilateral trade target of $100 billion by 2030, and initiate negotiations for a trade agreement with the Russia-led Eurasian Economic Union (EEU). 

The EEU includes Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, representing a $5 trillion economy. 

Understanding Non-Tariff Barriers

NTBs include quotas, embargoes, or technical regulations, standards, and conformity assessment procedures that ensure the safety, quality, and performance of goods but often act as obstacles to exports. 

“Our goal is to increase trade volume with Russia, focusing on electronics, engineering goods, and other products where there is potential for trade growth,” Barthwal reiterated. 

Addressing Trade Imbalances

To tackle the trade deficit with Russia, Modi highlighted the need to “increase Indian exports to Russia” by enhancing industrial cooperation during his Moscow visit. 

According to a joint statement, India and Russia plan to implement joint projects in key areas and emphasize the importance of increasing reciprocal trade flows of industrial products to boost their share in bilateral trade. 

Future Trade Strategies

“We are exploring various commodities, including electronics, engineering, and other products for export,” Barthwal said, adding that Indian marine and pharmaceutical exporters face certification issues in Russia. 

India is also looking at export opportunities in sectors where Russia is under Western sanctions. "We are also considering rupee-rouble trade, working on a dual strategy," the secretary added. 

Current Trade Data

Key Indian exports to Russia include electrical machinery, pharmaceuticals, machinery and mechanical appliances, chemicals, iron and steel. Major imports from Russia consist of oil and petroleum products, fertilizers, mineral resources, precious stones and metals, and vegetable oils. 

In the 2023-24 period, India's exports to Russia were valued at USD 4.26 billion, while imports amounted to USD 61.43 billion.