NEW DELHI: India and Russia are in talks to establish a free trade agreement (FTA) that would enhance bilateral commercial ties. Despite pressure from Western countries to distance itself from Russia after its invasion of neighbouring Ukraine in 2022, India’s imports from Russia have more than quadrupled to $46.33 billion during the last fiscal year, largely due to oil imports.
Denis Manturov, Russian Deputy Prime Minister, who is also the trade minister, announced the FTA talks at an event in New Delhi, saying, “We pay special attention and focus to the issues of mutual access of production to the markets of our countries.
Along with the Eurasian Economic Commission, we are looking forward to intensifying talks on a free trade agreement with India.”
Manturov also highlighted road construction materials and equipment, as well as chemicals and pharmaceutical products, as areas where Indian companies could increase their supplies to Russia.
In November, Russia reportedly sought to import over 500 products from India for key sectors such as cars, aircraft, and trains.
The announcement comes as India is also engaged in FTA discussions with the United Kingdom, the European Union (EU), and the Gulf Cooperation Council (GCC).
In addition, Russia is attempting to increase or maintain cooperation with other South Asian countries, such as building a nuclear power plant in Bangladesh and discussing discounted oil exports to Pakistan.
Indian Foreign Minister S. Jaishankar said the COVID-19 pandemic had disrupted talks on an FTA between India and the Russian-led Eurasian Economic Union, but he hoped the talks would continue as the FTA would “make a real difference to our trade relationship.”
India’s businesses to benefit from Russian technology
Jaishankar added that Indian businesses could benefit from Russian technology, and New Delhi was working to resolve issues with payments, certification, and logistics.
Russia’s efforts to promote trade with India are part of its strategy to evade the impact of Western sanctions by increasing commerce with Asian giants, including China. Russia displaced Iraq last month to become India’s top supplier of crude oil.
The conflict in Ukraine is described differently by the two sides, with Russia calling it a “special military operation” against security threats, while pro-West Ukraine declares it an unprovoked war of conquest.
India has not explicitly criticized Russia’s invasion and has called for a peaceful settlement of the conflict through dialogue.
The potential FTA between India and Russia signals a step-up in economic ties between the two countries, with the talks expected to intensify in the coming months.
