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India-Russia made a $100 billion plan, China and the US got worried!

Sagar Patel

By Sagar Patel

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The Prime Minister of India and the President of Russia have drawn up a $100 billion plan.

“The red cap on the head is Russian…” This line from the song from Raj Kapoor’s film caused a stir throughout Russia. Today, again, these same lines were on the lips of Indian Prime Minister Narendra Modi on Russian soil. Now one can understand how deep the friendship between India and Russia is and how far beyond the understanding of other countries. That is why the US government can do it completely. At the same time, China, which has been at odds with Russia, must have been frightened by the sight of this friendship.

Well, here it will not be just about politics and diplomatic relations between the two countries. Here the discussion will be about what kind of economic relations can be seen between India and Russia in the next 5-6 years. In fact, both countries have drawn up a plan of 100 billion dollars. Which has also been signed. Seeing this plan of the heads of state of both countries, the countries of America, China and Europe became worried. Let us also tell you what kind of plan India and Russia have drawn up.

What is the $100 billion plan?

The $100 billion plan drawn up by India and Russia is actually for bilateral trade. According to the information, both countries have drawn up a plan to increase bilateral trade to $100 billion by 2030. In addition, both countries have set out to balance trade, remove non-tariff trade barriers and explore the possibilities of a free trade zone between the Eurasian Economic Union (EAEU) and India.

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Several rounds of talks were held between Prime Minister Modi and Russian President Vladimir Putin. Later on Tuesday, both the heads of state issued a joint statement and informed the entire world about their plan. In which it was said that both countries plan to establish a bilateral settlement system using the national currency and incorporate digital financial instruments into the mutual settlement system.

These things were also discussed.

During his two-day visit to Russia, Indian Prime Minister Narendra Modi stressed on increasing economic cooperation in the sectors of energy, business, manufacturing and fertilizers. In addition to this, both countries stressed on increasing the supply of Indian goods to the bilateral trade balance and strengthening investment under the Special Investment Scheme.

On the other hand, Prime Minister Narendra Modi also mentioned Russia’s help to India in the energy sector. He said that when the world was facing shortage of food products, fuel and fertilizers, India did not let the farmers face problems and Russia played a major role in this. Modi also claimed that with Russia’s help there was no shortage of petrol and diesel in the country.

Bilateral trade with Russia is half that of the US and China

Currently, bilateral trade between India and Russia amounts to $60 billion. Which is almost half compared to the US and China. According to the data, India’s bilateral trade with the US is worth $118.28 billion in the financial year 2023-24. While with China, the highest figure is $118.40 billion. Despite the deterioration in relations with China, most of India’s business is done from here. If we talk about trade deficit, it has reached $85 billion. And with Russia it had also exceeded $57 billion.

On the other hand, India had a trade surplus of $36.74 billion with the US in the financial year 2023-24. The US is one of the few countries with which India has a trade surplus. The UK, Belgium, Italy, France and Bangladesh are also included in this list. India’s total trade deficit in the last financial year narrowed to $238.3 billion, compared to $264.9 billion in the previous year.

Why are China and the United States worried?

Since Indian Prime Minister Narendra Modi arrived on Russian soil. Since then, unrest has increased in China and the United States. If we talk about China first, then China is busy increasing its closeness with Russia. On the other hand, Russia does not like its friendship with India. In such a situation, India has a good chance to keep Russia away from China. So, Russia’s help can be used at any time to threaten China.

In such a situation, China’s anxiety has increased. On the other hand, it is not hidden from anyone how much resentment has grown between the United States and China. On the other hand, the United States is not made of Russia either. In such a situation, the United States considers India as its largest strategic and economic partner in South Asia. In such a situation, the United States is not able to digest the growing closeness between India and Russia.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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