The governments of India and Russia want to conclude a free trade agreement. For decades, Russia has been India’s largest supplier of military equipment and, conversely, India’s fourth largest market for pharmaceuticals.
There is a preliminary agreement on a free trade deal, Indian Foreign Minister Subrahmanyam Jaishankar said at an event in New Delhi on Monday. Because of Western sanctions over the war in Ukraine, the Russian government wants to expand its trade relations with other countries, especially in Asia.
For example, Russia has become India’s main supplier of crude oil, overtaking Iraq. Imports nearly quadrupled to $46.33 billion in the 12 months ended March 31. Now the import of machinery from India needs to be increased. According to Reuters, the Russian government may want to import more than 500 products from the Asian country for cars, planes and trains. The reason: it is becoming increasingly difficult to keep the nuclear industry running.
Russian technology, Indian pharmaceuticals
India, in turn, wants to reduce its growing trade deficit with Russia. The country is the largest supplier of military equipment and the fourth largest market for Indian pharmaceuticals. Foreign Minister Jaishankar said his country’s economy could benefit from the technology. The government is therefore working to solve the problems with payments, certification and logistics.
Source: Krone
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