India and Russia discuss free trade agreement

Russian Deputy Prime Minister Denis Manturov announced that India and Russia are considering signing a free trade agreement that will guarantee investment between the two countries.

Manturov met with India’s Foreign Minister Jaishankar in New Delhi.

Speaking at an event in New Delhi, India’s Foreign Minister Jaishankar said his government is in a preliminary agreement for a trade deal, which Russia’s Trade and Industry Minister Denis Manturov said would bring assurances from bilateral investment.

On the other hand, India did not openly condemn Russia’s invasion of Ukraine, which Moscow calls a “special military operation”, and called for a peaceful solution through dialogue.

RUSSIA WANTS TO INCREASE ITS MACHINERY IMPORTS FROM INDIA

Russia, which became India’s largest crude supplier, replacing Iraq last month, increased its total exports to India by almost 4 times as of March 31, reaching $46.33 billion.

Russian Deputy Prime Minister Manturov said that Russia wants to increase its imports of machinery from India to improve its trade balance.

Reuters noted in November that Russia was looking to import more than 500 items from India, potentially for key sectors including cars, planes and trains, as Western sanctions have undermined Moscow’s ability to keep key industries running.

India is also aiming to reduce its growing trade deficit with Russia, which for decades has been India’s biggest supplier of military equipment and its fourth-biggest market for Indian pharmaceuticals.