India and Russia are planning to sign a Free Trade Agreement! Let’s explore how India stands to benefit from this game-changing FTA.
India and Russia are strong trade partners even amid the face of political pressures from the West.
Russia imports engineering goods, drugs, and organic and inorganic chemicals from India. India imports crude petroleum, diamonds, and refined petroleum from Russia. The two countries have strengthened their trade relationships over the past few years.
Despite the West’s efforts to drive a wedge between the two nations, Russia remains India’s fourth largest trading partner, with the trade volume inching closer to the 50 billion dollar mark.
However, there is a catch – the trade could be more balanced. India is a more significant contributor to the trade as it has been buying crude from Russia in large quantities at discounted prices due to increasing demand.
Nevertheless, after successful trade relations, India and the Eurasian Economic Union members led by Russia are now considering signing a Free Trade Agreement.
What’s Happening?
The Free Trade Agreement discussed between India and the Eurasian Economic Union members, including Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, aims to reduce or eliminate trade barriers, such as high tariffs and quotas, and others that hinder imports and exports between these countries. If the FTA deal goes through successfully, it will create an environment where businesses can sell their products more efficiently and bridge the gap between imports and exports. It will also lower costs across borders, leading to an increase in trade between these countries.
How Will the Free Trade Agreement Benefit India?
According to a recent report published by the Federation of Indian Chambers of Commerce & Industry, the FTA is said to offer Indian industries greater market access in the Eurasian regions. This will help diversify the basket of goods and services between the two regions and reduce trade barriers, improving logistics and connectivity.
In addition to these benefits, the FTA is expected to lead India’s image as a hub for knowledge-based services which will enhance India’s brand image and attract more investment and trade opportunities to India.
It’s an exciting development that could lead to new business opportunities and growth for India.
What’s Next?
The FTA between India and Eurasian regions is expected to impact India’s economy in several key areas positively. According to a Hindustan Times report, the FTA will enable India and Russia to collaborate in oil and gas, gold and diamond, timber, pharmaceuticals, agriculture, aviation, railways, and logistics.
With the correct implementation, this FTA could be a game-changer for India and its trade relations with the Eurasian regions.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
