**India and Russia Aim to De-Dollarize Trade to Reach $100 Billion Target by 2030**
In a strategic move to enhance bilateral trade, India and Russia are focusing on de-dollarization, aiming to increase their trade volume to $100 billion by 2030. This initiative was highlighted by Zlata Antusheva, Moscow’s trade representative to India, in a recent interview with RT India.
Antusheva emphasized the importance of establishing an independent payment system that utilizes local currencies for transactions between the two nations. Currently, a significant portion of trade is conducted in local currencies, which she described as a positive development. "It is extremely important to create an independent system with the use of local currencies," she stated.
To facilitate this transition, Russia is developing mechanisms to expand payments and settlements in local currencies with partner countries, including India. This effort is part of a broader strategy to reduce reliance on Western currencies in international trade. Antusheva noted that Russia and China have already made considerable strides in this direction, effectively eliminating the use of Western currencies in their bilateral trade.
Three major Russian banks—Sberbank, Gazprom Bank, and VTB Bank—currently operate in India, with Alfa Bank, the largest private bank in Russia, expected to establish a presence in the country soon. These banks are crucial in implementing the new payment mechanisms, with Sberbank recently introducing a "10-minute cross-border transaction mechanism" to expedite financial dealings.
Antusheva also highlighted the need for both countries to focus on sectors such as technology, electronics, artificial intelligence, pharmaceuticals, manufacturing, and chemicals. She pointed out that aligning with India's self-reliance policy, there is a pressing need for sovereign infrastructure to ensure technology independence.
In addition to these financial and economic initiatives, an India-Russia AI Cybersecurity Center of Excellence is in development. This center aims to foster collaboration in artificial intelligence and cybersecurity, connecting the AI ecosystems of both countries and extending the partnership to other BRICS nations.
The push for de-dollarization and increased trade cooperation reflects a significant shift in the geopolitical landscape, as countries seek to establish more independent economic frameworks. The success of these initiatives will depend on the commitment of both nations to strengthen their economic ties and navigate the complexities of international trade in a rapidly changing global environment.