India Urges Russia to Ease Trade Barriers, Boost Exports to Drain Rupee Pile-up

• India is pressing Russia to reduce non-tariff barriers like mandatory Russian-language packaging and shifting standards for electronics and engineering goods.
• These barriers hinder Indian exports, contributing to a growing accumulation of rupees in Russian vostro accounts.
• The issue will be central to the second round of free trade agreement negotiations between India and the Russia-led EAEU in February.
• Despite pledges to increase bilateral trade to $100 billion by 2030, India's exports to Russia are less than $5 billion annually, while imports are around $64 billion, mainly crude oil.
• The rupee-ruble settlement mechanism struggles due to the skewed trade balance, limited bank participation, and Western sanctions on Russia.

Why It Matters: India seeks Russia to lower non-tariff barriers to boost Indian exports, reduce trade deficit, and manage rupee accumulation.