Manturov said the FTA that the Russia-led Eurasian Economic Union has been negotiating with India since August last year will be a new driver for sustainable trade growth. “Its preparation is in an active stage and it is important to maintain a high pace of negotiations,” he mentioned at the 27th Session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation, which he is co-hosted with Jaishankar in Moscow.
Also read: Russian president Putin assures India of uninterrupted supply of energy, fertilisers
The FTA with EAEU will give India access to the Eurasian region having rich energy, critical mineral and rare earth deposits. The issue will be in focus when the PM meets the Russian President early next week and again during the BRICS Summit and later during the annual Summit.
On Monday during his meeting with Jaishankar Putin assured uninterrupted supply of energy and fertilisers to India. India is now the second largest importer of Russian crude and there are talks of joint investment projects for the extraction and processing of hydrocarbons.
Manturov during Monday’s meeting noted the “potential for expansion and cooperation in the metallurgy and mining industries, including joint development of deposits and processing of non-ferrous, rare, and rare earth metals.”Indian minerals and metals companies have reached out to their Russian firms in the recent months as they seek to secure supplies of critical rare-earths and minerals amid global supply chain disruptions and weaponization of supply chains.
Bilateral trade turnover between India and Russia grew 8% in the first half of the year, Manturov informed, adding that both exports and imports showed expansion. “Our goal is not only to increase the volume of trade turnover, but also to diversify its structure,” Manturov said.
India and Russia are pursuing a bilateral trade target of $100 billion to be reached by 2030.
Jaishankar during the Monday’s meeting said bilateral trade has increased more than fourfold in the last four years, from around $13 billion in 2021-22 to over $60 billion in 2025-26. He, however noted, that the rapid expansion has increased the trade imbalance.
Jaishankar suggested that progress on market access, removal of tariff and non-tariff barriers, and strengthening payment mechanisms will be critical in addressing the imbalance.
Manturov also stressed the need to improve mutual access of goods alongside “an expansion of direct contacts between the business circles of our countries.” He emphasized the need to stimulate business participation in exhibitions and fairs, and highlighted the international industrial exhibition ‘INNOPROM. India’, which will be held for the first time in New Delhi on the eve of the BRICS summit next month.
With regard to connectivity initiatives Manturov explained the competitive advantages of the Northern Sea Route, noting that Rosatom is discussing mutually beneficial formats for cooperation on the Arctic route.
India, which has shown keen interest in the route amid global shipping disruptions, plans to send its first cargo ship along the Arctic route next year.
Manturov referred to a slew of areas where cooperation with India is deepening – from industrial cooperation, for its role in “ensuring the technological sovereignty of our countries” to space, in particular, “in manned spaceflight, rocket engines, and satellite navigation.”
The Russian First Deputy PM referring to the Kudankulam nuclear power plant project noted in Monday’s meeting that could be a basis for building new power plants across India, including SMRs. Rosatom is involved in the process to set up SMRs in India.