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On the first day of his visit, Denis Manturov will serve as co-chair of the 24th India Inter-governmental Commission on Trade, Economic, Scientific, Technological, and Cultural Cooperation (IRIGC-TEC) which is the main institutional structure in charge of overseeing economic cooperation.Â
It incorporates six working groups on science and technology, modernization and industrial cooperation, as well as economic and trade cooperation, information and communication technology, energy, and tourism and culture.
The final protocol will be signed by the 24th IGC conference co-chairs on Tuesday during the plenary session of the intergovernmental commission (IGC).
Free-Trade Agreement in talks
A free trade agreement (FTA) between India and Russia is being discussed, the Russian trade minister announced on Monday. This development might strengthen the strong bilateral commercial ties that have developed since the conflict in Ukraine.
Despite calls from Western nations for India to gradually remove itself from its main weapons supplier, Russia, following its invasion of Ukraine in February 2022, the FTA talks signal an improvement in commercial relations between the two nations.
Over the previous fiscal year, India’s imports more than doubled to $46.33 billion, primarily through oil. Previously, Iraq was the primary crude oil importer for India.
Deputy Prime Minister and Trade Minister Denis Manturov stated at the event in New Delhi that they paid special attention to the issues of mutual access of production to the markets of both countries and added that he looked forward to scaling up negotiations on a free trade agreement with India along with the Eurasian Economic Commission.
The COVID-19 pandemic, according to Indian Foreign Minister S. Jaishankar, had interfered with negotiations on an FTA between India and the Eurasian Economic Union led by Russia. He expressed hope that the two nations would pick up on this because they believe that it would make a real difference to their trade relationship.
In light of the Western sanctions imposed as a result of Russia’s military action in Ukraine, it was reported in November, that Russia may be looking to import more than 500 products from India for important sectors including cars, aircraft, and trains.
The usage of “national currencies and currencies of friendly countries” would also be expanded, Manturov added. India has been eager to use the rupee more frequently in its dealings with Russia.
India and Russia’s trade ties
Jaishankar claimed that talks for a bilateral trade pact with Moscow were “advanced.”
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. However, a huge increase in imports from Moscow, which is under sanction, has drastically skewed trade data.
India’s imports from Russia have historically stayed below five times its exports to the nation. The ratio reached 4.1 in 2017–18, which was previously the most under the Narendra Modi administration. However, imports were 15 times higher in 2022–23 through January than exports.
According to a formal announcement by the Indian embassy, Russian investment in India surpassed USD 18 billion in 2017 and India has so far invested USD 13 billion in Russia. It claimed that the USD 30 billion total investment goal that had been established for 2025 had already been attained.
Between 2000 and 2014, cumulative Indian investments in Russia totalled around $8 billion, whereas cumulative Russian investments in India totalled around $4 billion, primarily in the automotive (KAMAZ) and telecommunications (AFK Sistema) industries. The statement also noted that there was a renewed focus on boosting bilateral investment between 2015 and 2017, particularly in the oil industry.
Also Read: https://www.inpactimes.com/2023/04/10/indias-russian-oil-imports-now-double/
