India-Russia FTA advances: Manturov

Russian First Deputy Prime Minister Denis Manturov discussed the progress of the India-Russia Free Trade Agreement (FTA) at the 27th Session of the India-Russia Inter-Governmental Commission. The FTA negotiations, which have been ongoing since August last year, are now in an active stage, according to Manturov. The agreement is expected to serve as a catalyst for sustainable trade growth between the two nations.

Manturov highlighted the potential benefits of the FTA, including access to the Eurasian region's rich energy, critical mineral, and rare earth deposits.

During the same session, Russian President Vladimir Putin assured India of uninterrupted supplies of energy and fertilizers, which has bolstered India's imports of Russian crude. Russia and India are also exploring joint investment projects in hydrocarbon extraction and processing. Indian companies have been reaching out to Russian firms for critical rare-earths and minerals, driven by global supply chain disruptions and weaponization of supply chains.

The bilateral trade turnover between India and Russia grew by 8% in the first half of the year, with both exports and imports expanding. The goal is not just to increase trade volume, but to diversify its structure. Trade between the two nations is targeted to reach $100 billion by 2030. Jaishankar noted that bilateral trade has increased more than fourfold in the last four years, but also mentioned that this rapid expansion has led to a trade imbalance.

To address the imbalance, efforts will be made to improve market access, remove tariff and non-tariff barriers, and strengthen payment mechanisms. Jaishankar suggested that progress on these fronts will be crucial. Manturov emphasized the need to improve mutual access of goods and stimulate business participation in exhibitions and fairs. He highlighted the international industrial exhibition 'INNOPROM. India', which will be held in New Delhi on the eve of the BRICS Summit next month.

Manturov also discussed cooperation in various fields, including industrial cooperation, space, and nuclear power. The Kudankulam nuclear power plant project could serve as a model for building new power plants in India, including Small Modular Reactors (SMRs). Rosatom is involved in discussions for setting up SMRs in India.