Russia plans to intensify negotiations with India for a free trade agreement

Russian Deputy PM and Minister of Industry and Trade Denis Manturov arrived on a two-day visit to New Delhi on Monday.

New Delhi: Russia is planning to intensify negotiations with India to conclude a free trade agreement, said visiting Russian Deputy Prime Minister and Minister of Industry and Trade Denis Manturov. Manturov arrived on a two-day visit to New Delhi on Monday. During his meeting with External Affairs Minister Dr S Jaishankar and representatives of the Russian and Indian business today Manturov said, "Particular importance is attached to the issues of mutual access of products to the markets of both countries. Together with the Eurasian Economic Commission, it is planned to intensify negotiations with India to conclude a free trade agreement".

Meanwhile, EAM Jaishankar said the government was in advance agreement with Russia on a trade treaty that would bring a guarantee of bilateral investment and bolster commercial and trade ties that have been flourishing since the Russia-Ukraine war. India has not openly criticised Russia for the invasion given its strong defence cooperation. Russia is India's largest and oldest military equipment supplier.

According to sources, overall Indian imports from Russia increased almost fourfold to $46.33 billion till March 31, 2023. Denis Valentinovich Manturov pointed out that Moscow was looking to increase machinery imports from India to improve the trade balance. “We need to find a niche in the products, which India can replace,” he told reporters on the sidelines of the event. “In civilian projects, we need as wide cooperation as it was before the sanctions", he added.

The business forum participants also discussed issues of further enhancement of the Russian-Indian practical cooperation, including within the Intergovernmental Commission (IGC). “The IGC is a unique mechanism for a comprehensive discussion of topical issues on the Russian-Indian agenda with the participation of specialised departments and organisations of the two countries. We are talking not only about trade and economic relations, but also about humanitarian areas of interaction, such as education and culture,” said Denis Manturov.

He also spoke about the measures taken to strengthen Russia's technological sovereignty. At the same time, Manturov reiterated that there is no goal to completely replace everything". “We will rely on trusted foreign partners. We will make every effort to expand our cooperation ties. To exchange competence and experience in the most promising technological areas,” he underscored.

Additionally, the issue of signing a Russian-Indian agreement on the encouragement and mutual protection of investment is being worked out. Trade preferences and mechanisms that guarantee the safety of investment will be in demand by both Russian and Indian businesses.