NEW DELHI: India and Russia are discussing free trade agreement (FTA), Russian trade minister said, an announcement that could deepen bilateral commercial ties that have flourished since war broke out in Ukraine. FTA talks mark step-up in economic relations between two countries despite calls from Western countries for India to gradually distance itself from its dominant weapons supplier, Russia, over its February 2022 invasion of Ukraine. India’s imports from Russia more than quadrupled to $ 46.33 billion over last fiscal year, mainly through oil.

“We pay special attention to issues of mutual access of production to markets of our countries,” Russian Deputy Prime Minister Denis Manturov, who is also trade minister, told an event in New Delhi. “Together with Eurasian Economic Commission, we are looking forward to intensifying negotiations on free trade agreement with India.” Indian Foreign Minister S. Jaishankar said Covid endemic disrupted discussions on an FTA between India and Russian-led Eurasian Economic Union and that he hoped “Our colleagues will pick up on this because we do believe it will make real difference to our trade relationship”.

Manturov said road construction material and equipment and chemicals and pharmaceutical products were in demand in Russia and “I am sure that this will create opportunities for Indian companies to increase their supplies to Russia”. Manturov also said Russia would consider widening use of “National currencies and currencies of friendly countries”. India has been keen on increasing use of its rupee currency for trade with Russia.

Published in The Daily National Courier, April, 18 2023

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