India Russia Agreement

Both governments have long considered their bilateral trade well below its optimal potential, which can only be corrected in the long term by a free trade agreement (FTA). [65] [66] The two governments have set up a Joint Task Force (JSG) to negotiate the specifications of an agreement, a final agreement between India and the Eurasian Economic Union, to which Russia belongs (including Kazakhstan, Armenia, Kyrgyzstan and Belarus). [67] As a result, the indorused free trade agreement would lead to a much broader free trade agreement, which would include India, Russia, Kazakhstan, Armenia, Kyrgyzstan and Belarus. [65] Bilateral trade, once a free trade agreement is in place, is expected to significantly increase the importance of the economy in bilateral relations. [65] [68] [69] Nevertheless, Russia`s market share ensures that the country remains a critical supplier to India, both for new weapons and for spare parts. Military-technical cooperation, which includes technology transfers and joint production, is a unique and extremely valuable relationship for India. The 2014 low was also corrected and major intergovernmental agreements were signed at the 2016 annual summit, including the delivery of the S-400 Triumph Air Defence Missile System and four Admiral Grigorovich class frigates [39] (contracts were concluded in 2018) and a shareholder contract for the manufacture of Ka-226T helicopters in India. Traditionally, the strategic partnership between Indo-Russia consists of five main components: politics, defence, civil nuclear energy, counter-terrorism cooperation and space. [1] These five main elements were highlighted in a speech in Russia by former Indian Foreign Minister Ranyan Mathai. [1] In recent years, however, a sixth economic component has grown in importance, with both countries aiming to reach $30 billion by 2025 in bilateral trade[2][3] of about $9.4 billion in 2017. [4] To achieve this goal, the two countries want to develop a free trade agreement. [5] [6] [7] Bilateral trade between the two countries increased by more than 24% in 2012.

[7] India and Russia have signed 15 agreements to improve bilateral cooperation in various areas, including oil and gas, mining, road transport and coal. In 2017, the 70th year since the establishment of diplomatic relations between India and Russia, Prime Minister Modi was invited as a guest of honour at the St. Petersburg International Economic Forum (SPIEF). Although the joint statement was issued in 2014 as a vision document for the next ten years, only three years later, June 2017,