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Informist, Monday, Jul 15, 2024

--Trade secy: Asked Russian govt to address non-tariff barriers 

--Govt: Finalising terms for trade pact with Eurasian Union 

--Trade secy: Aiming to improve rupee trade with Russia 

--Trade secy: Formed panel to address non-tariff trade barriers 

--Govt: To set up portal for exporters to report non-tariff barriers 

--Trade secy: PM's Russia visit to definitely help improve trade

NEW DELHI – India is currently finalising terms for a free trade agreement with the Eurasian Economic Union, the commerce department said today. The two sides may soon start the negotiations, though there is no fixed timeline yet, the department said. 

Russia is India's largest member in the Eurasian Union, which also has Armenia, Belarus, Kazakhstan, and Kyrgyzstan. India had a total trade of $66.27 bln with the region in 2023-24 (Apr-Mar), out of which $65.69 bln was with Russia. 

Prime Minister Narendra Modi's recent visit to Russia will definitely help improve bilateral trade with Russia, Commerce Secretary Sunil Barthwal said. Modi went on a two-day trip to Moscow to attend the 22nd India-Russia bilateral summit last week. During the visit, Modi and Russian President Vladimir Putin set a bilateral trade target of $100 bln by 2030.

The discussions for a trade pact with the Eurasian Union have also been back on the table since Modi's visit. Modi and Putin had agreed to explore a trade pact in 2021, but the discussions stalled as Russia's priorities shifted after the Ukraine war. 

India's trade with Russia has risen significantly since 2022 after New Delhi started importing crude oil from Russia at a discounted price in the aftermath of the Ukraine war. India's import of crude oil from Russia jumped to over $40 bln in 2022-23 from about $6.38 a year ago. In the last fiscal year, India imported goods worth $61.43 bln from Moscow, and exported goods worth $4.26 bln.

India wants to push more exports to Russia to balance the trade deficit. In this context, there is an attempt to smoothen the settlement of trade with Russia in local currency, Barthwal said.

India has also asked the Russian government to address the non-tariff barriers, Barthwal said. The government thinks sectors like marine products and pharmaceuticals have the potential to raise India's exports to Russia, Barthwal said. 

The department is working on addressing non-tariff barriers with all the trading partners and has formed a panel for this, the secretary said. The department will also set up an online portal soon where exporters can flag non-tariff barriers, he said.  End

US$1 = 83.59 rupees

Reported by Krity Ambey

Edited by Saji George Titus

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