New Delhi, April 18 – Visiting Russian Minister of Trade and Industry, Denis Manturov, said on Monday that India and Russia are deliberating on a free trade agreement (FTA), a move which could enhance commercial relations between the two nations.
The talks between the two countries on a possible FTA are likely to further accelerate economic relations between both the nations, despite Europe and America urging India to distance itself from Russia due to the latter’s invasion of Ukraine in February last year.
India’s imports from Russia have grown more than four times to $46.33 billion over the last fiscal, mainly due to oil purchases from that country.
“We pay special attention to the issues of mutual access of production to the markets of our countries,” Manturov said during an industry event.
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He added that along with the Eurasian Economic Commission, Russia is looking forward to fast-track negotiations on a free trade agreement with India.
External Affairs Minister S. Jaishankar, who was also present at the event, said that the Covid-19 pandemic had disrupted discussions on an FTA between the two countries, but expressed hope that talks will resume on it soon.
India will work with Russia to resolve trade imbalances: Jaishankar
External Affairs Minister S. Jaishankar on Monday said that India will work with Russia to resolve trade imbalances.
Addressing the India-Russia business dialogue organised by industry body FICCI, the minister said, “There are understandable concerns about trade imbalance and we need to work with our Russian counterparts to address this imbalance. We should be honest about short and medium-term challenges. There could be over-compliance.”
He further said that there is a need to motivate business on both sides.
“You can see that there are big changes going on like ‘Make in India’. We are determined to make India a global manufacturing hub. I want to emphasise on the opportunity of ‘Make in India’,” Jaishankar added.
Denis Manturov, Russian deputy prime minister as well as industry and trade minister was also present on the occasion.
“We are discussing the importance of connectivity and the north-south and maritime corridors have been considered. There is also discussion on payment issues like international trade settlement in the Indian rupee,” Jaishankar said further.
Manturov on his part said, “Because of a lack of imports from India, it’s not enough to use Rupee. We need to boost trade from India. In this case we are looking at balance, like for example, we have with China – we have 200 billion dollars trade with China and it’s balanced.”
He was commenting on the India-Russia trade and payments issue.
Meanwhile, Jaishankar in his address further said that India and Russia have historic people-to-people ties.
“Our partnership today is a subject of attention and comment, not because it has changed but because it hasn’t. We share a commitment to a multipolar world. Russia is looking towards Asia and for India, it could mean broadening of ties. What we make of the current situation depends very much on us,” the external affairs minister said.
