Desh Ki Baat

Russia-India negotiating on Free Trade Agreement

Deepening Bilateral Ties Between Russia-India: A Good Indication

Russia- India have been mulling over a Free Trade Agreement (FTA) that will deepen the bilateral ties between New Delhi and Moscow. Over the years, Russia- India have maintained a good relationship and even with the Putin regime invading Ukraine, India has treaded this territory very smartly. 

Last month, at the India-Russia Business Dialogue in New Delhi,  Dr S Jaishankar, India’s External Affairs Minister and Russia Deputy Prime Minister Denis Manturov confirmed this speculation

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Manturov also emphasised on growing relations with India in regards to trade, industry, culture and education. He said- “We’ve launched the program of preferential loans and insurance of Russian importers towards procurement of priority products from foreign countries. Among the most demanded goods under this program are –components and equipment for road construction, products of chemical and pharmaceutical industries. I am sure that this will create opportunities for Indian companies to increase their supplies to Russia.”

FTA Between Russia-India

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A free trade agreement between the two countries will be good for the markets of both the countries. The nations are also discussing a BIT (Bilateral Investment Treaty) that will provide protection for investors on both sides. This is needed to boost confidence of investors, according to Jaishankar.


Jaishankar also spoke about the disrupted FTA between Eurasian Economic Union (EAEU) and India due to the pandemic. Member states of EAEU include Russia along with Armenia, Belarus, Kazakhstan, and Kyrgyzstan. As this bloc has a huge market and combined GDP, an FTA with them will be a huge win for India. 

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Though there is a trade imbalance in favour of Russia as India has been purchasing oil and gas from Russia, the external affairs minister has also called to address this imbalance. 

“We need to work together with our Russian friends on a very urgent basis on how to address that imbalance. And addressing the impediments — whether they are market access impediments, whether they are non-tariff barriers, whether they are related to payments or to logistics,” Jaishankar said. 

It remains to be seen how Russia and India maintain their relations in light of pressure from the West and the Ukraine situation. 

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Harshita Bajaj

Harshita has a background in Psychology and Criminology and is currently pursuing her PhD in Criminology. She can be found reading crime thrillers (or any other book for that matter) or binge-watching shows on Netflix when she is not in hibernation.
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