Arab Press

بالشعب و للشعب
Saturday, May 31, 2025

India, Russia talk free trade deal in step-up of relations

India, Russia talk free trade deal in step-up of relations

India and Russia are in discussions for a free trade agreement, their ministers said on Monday, with the deal expected to further boost commercial ties that have flourished since Moscow’s invasion of Ukraine.
Russia’s Deputy Prime Minister Denis Manturov and India’s Foreign Minister Subrahmanyam Jaishankar held a meeting with business leaders from the two countries on Monday as part of Manturov’s two-day visit to the South Asian country.

A free trade deal will mark a step up in India-Russia economic relations as New Delhi maintained expanding ties with both Russia and the West amid the war in Europe, which it has not explicitly criticized.

“We will rely on trusted foreign partners. We will make every effort to expand our cooperation ties,” Manturov, who is also the industry and trade minister, told a business forum in New Delhi. “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.”

Discussions on a trade pact between India and the Russian-led Eurasian Economic Union had been disrupted by the COVID-19 pandemic, Jaishankar said at the event.

“The (COVID-19 pandemic) interrupted those discussions, so I would very much hope that our colleagues will pick up on this. We will certainly encourage them from the Foreign Ministry side, because we do believe that they will make a real difference to our trade relationship,” he said.

India and Russia are also in “advanced negotiations” on a new bilateral investment treaty, Jaishankar added.

India’s imports from Russia more than quadrupled to over $46 billion over the last fiscal year, mainly through oil, which had been available only in small quantities before the war that began in February last year.

While Russia has long been India’s top source of military hardware, last month it became New Delhi’s top supplier of crude oil, displacing Iraq.

Monday’s announcement comes at a time when India is also in talks for an FTA with the UK, the EU, and the Gulf Cooperation Council.

While an FTA with the Moscow-led Eurasian Economic Union has been discussed for years without much progress, India’s trade priorities shifted after the Russian invasion, said Amitabh Singh, an associate professor at the Centre for Russian and Central Asian Studies at Jawaharlal Nehru University.

“Now, our priority of trade has changed after the Ukraine war. Earlier, we were not buying crude oil from Russia, and now we are doing that. So, it would require a rethink in terms of the FTA,” Singh told Arab News.

“India and Russia have not been able to achieve the level of trade relations that they could (potentially) have. Trade between them is minuscule compared to the size of the two countries,” Singh said.

“Ideally, India would like to join the FTA, but…I don’t think in the course of war anything substantial can be done. India wouldn’t like to be seen as a sympathizer to Russia if the war goes on.”

Even if such a deal goes through as war continues in Ukraine, however, India may not have to worry about any implications from the West, said Harsh V. Pant, head of strategic studies at the Delhi-based Observer Research Foundation.

“I don’t think the West will really take it that seriously if India does go ahead with the deal,” Pant told Arab News.

“India and Russia have, for a very long time, been trying to revive their economic relationship because their relationship is very weak. Signing an FTA would be Russia’s way of saying that they are serious about economic relations with India,” Pant said.

“They want to invest in it whether or not it goes through, whether or not there is any possibility of succeeding.”
Comments

Oh ya 2 year ago
All the while not using the US petrodollar. Slowly the US sinks into the backdrop of night

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
Senate Democrats Move to Censure Trump Over Qatar Jet Gift
Hamas Releases Last Living US Hostage from Gaza Amid Ongoing Conflict
×