According to Russia’s Deputy Prime Minister Mr. Denis Manturov, who was present at an event in New Delhi with India’s Foreign Minister Mr. S. Jaishankar, the two nations are in talks to establish a free trade agreement (FTA) to guarantee investment between them.
India was in an ‘advance agreement’ for a bilateral trade treaty with Moscow. The bilateral trade has been the main beneficiary and a catalyst in this shift, and it has helped the New Delhi-Moscow relations withstand the demands from the West.
The New Delhi – Moscow relations have withstood the West’s pressures, and bilateral trade has been the biggest benefactor as well as a catalyst in this transformation. However, a sharp surge in imports from sanctions-hit Moscow has made trade figures overwhelmingly one-sided.
Historically, India’s imports from Russia have stayed under five times its exports to the country, with the ratio touching 4.1 in 2017-18, previously the highest under the Narendra Modi government. But in 2022-23 till January, imports have been 15 times the exports.
Russian investment in India surpassed US$ 18 billion in 2017 and India has so far invested US$ 13 billion in Russia. Furthermore, the US$ 30 billion total investment goal that had been established for 2025 had already been attained.
In addition to the current investment process in the strategic sectors in both countries, both sides have taken various steps to boost bilateral investments, particularly through facilitating high-level government-to-business and business-to-business relations.
It is also predicted that both countries will have investment cooperation in the sectors of hydrocarbons, power, coal, nuclear power, fertilizers, IT, mineral and metallurgy, steel, pharmaceuticals, and infrastructure projects amongst others.
Both sides have undertaken initiatives to promote bilateral investments, primarily through facilitating high-level Government to business and business-to-business contacts apart from the ongoing investment process in strategic sectors in both countries.
