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Source: The post is based on the article “India, Russia agree to deepen trade and economic relations” published in Business Standard on 19th April 2023
What is the News?
India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation(IRIGC-TEC) meeting was recently held.
What is IRIGC-TEC?
India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) is the apex G2G forum for bilateral economic cooperation.
It is chaired by the External Affairs Minister from the Indian side and Deputy Prime Minister from the Russian side.
What are the key highlights from the meeting?
Rising Trade deficit: The rising dependence on discounted crude oil has resulted in India’s trade deficit with Russia hitting the second-highest place in 2022 after China.
– During 2022-23, India’s maximum trade deficit was with China at $71.58 billion. This was followed by Russia, where the deficit expanded sevenfold — from $4.86 billion in FY22 to $34.79 billion in FY23.
Oil imports from Russia: India’s imports from Russia have more than quadrupled to $46.33 billion over the last fiscal year, mainly through oil.
– Russia, traditionally India’s top source of military hardware, displaced Iraq last month to become India’s top supplier of crude oil.
India-Russia FTA: India and Russia are discussing a free trade agreement (FTA). This could deepen bilateral commercial ties that have flourished since the war broke out in Ukraine.
Free trade pact with Eurasian Economic Union (EAEU): India’s External Affairs Minister has said that a free trade agreement (FTA) with EAEU — comprising five member states of Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia will certainly deepen the bilateral commercial relationship between India and Russia.
