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India, Russia talk free trade deal in step-up of relations

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On January 17, 2018, the Russian and Indian foreign ministers met in Washington D.C., in a step-up of relations between their two countries. The main purpose of the meeting was to discuss the steps that need to be taken in order to create a free trade agreement between the two countries. The two foreign ministers stated that they are committed to having a free trade agreement between their two countries by 2021. The two ministers further stated that there are a number of steps that need to be taken in order to make the process as smooth as possible. The ministers also agreed that they want to work together to increase the number of Russian businesses in India.

1. The step-up of relations between India and Russia

Step-up of relations

India and Russia have shared cordial ties since the Cold War era. However, in recent times, both countries have taken significant steps to further enhance their strategic partnership. These steps have led to increased cooperation in various sectors, including defense, energy, and trade.

  • The two countries have signed several bilateral agreements to boost their defense cooperation, including the purchase of advanced defense equipment and joint military exercises.
  • India and Russia have also deepened their energy cooperation, with both countries collaborating in the oil and gas industry. Russia has become an important source of crude oil for India, and both countries are actively exploring opportunities to expand their cooperation in the energy sector.
  • The trade between India and Russia has also witnessed significant growth in recent times, with both countries implementing measures to attract foreign investments and increase two-way trade.

The strengthening of India-Russia relations has also gained importance due to geopolitical changes in the region and rising tensions with other global powers. India and Russia have shared concerns on several regional and global issues and have worked together to promote peace and stability in the region.

  • India and Russia have taken joint initiatives to stabilize the situation in Afghanistan and fight terrorism in the region.
  • The two countries have also supported each other’s positions on the United Nations Security Council and other international forums.
  • India and Russia have further pledged to cooperate on the development of new technologies, including space exploration and high-end defense technologies, to fuel innovation and promote scientific advancements.

2. The merits of a free trade agreement with India

Merits of a Free Trade Agreement with India:

India is a market with huge potential for global trade, and a free trade agreement (FTA) with the nation can provide several benefits to countries involved. Here are some of the advantages of an FTA with India:

  • Increased trade: Free trade agreements remove trade barriers between countries, promoting trade relations and making it easier for businesses to buy and sell in foreign markets. An FTA with India would facilitate better access to the Indian market, opening doors for increased trade and investment opportunities.
  • Cost savings: Eliminating barriers to trade would reduce the costs for businesses involved in importing and exporting products and services. This would increase competition in the market, resulting in lower prices for consumers, and help firms to expand their businesses by reducing the costs of production.
  • Boost economic growth: As the Indo-Pacific region’s fastest-growing large economy, India offers immense possibilities for businesses seeking opportunities for investment and expansion. The FTA would benefit both sides, creating jobs and spurring economic growth.
  • Improve diplomatic relations: Strengthening diplomatic ties between nations is a significant factor in promoting trade agreements. An FTA would not only increase trade but also foster better understanding and communication, leading to mutual benefits in other areas of the partnership.

In conclusion, a free trade agreement with India offers several benefits and opportunities for businesses, creating a win-win situation for both sides. Such an agreement has the potential to increase trade, reduce costs, boost economic growth, and improve diplomatic relations, making it a worthy consideration for countries looking to expand their global reach.

3. The step-up of relations between India and Russia

India and Russia have always shared a cordial relationship, but in recent years, the two countries have further strengthened their ties. The partnership between the two countries is based on mutual trust, understanding, and a shared vision for a better future. Here are some key areas where India and Russia have stepped up their relations:

  • Defense: India is one of the largest buyers of Russian arms and equipment. Russia has been a crucial partner for India in defense cooperation, and the two countries have jointly developed and produced various defense equipment.
  • Energy: Energy has emerged as a key area of collaboration between India and Russia. India is looking to diversify its energy sources and is exploring opportunities to increase its oil and gas imports from Russia.
  • Space: India and Russia have been cooperating in space exploration since the 1980s. The two countries have jointly launched several satellites and have plans for more joint projects in the future.

India and Russia have also expressed their commitment to strengthening their economic ties. The two countries have set a target of increasing their trade to $30 billion by 2025. India and Russia also plan to explore new areas of cooperation such as agriculture, pharmaceuticals, and infrastructure development. is a positive sign for the region and the world, and it is expected that the partnership between the two countries will continue to grow in the coming years.

4. The potential benefits of a free trade agreement with Russia

A free trade agreement with Russia could have several advantages for both countries, including:

  • Increased trade volume: A free trade agreement would eliminate barriers to the movement of goods and services, leading to an increase in trade between the two countries. This could boost economic growth for both nations, especially for Russia, which has been struggling due to Western sanctions.
  • New market opportunities: A free trade agreement would enable companies from both countries to expand into new markets. Russia has a large consumer market, which could be an attractive prospect for businesses that are looking to expand their customer base.
  • Lower costs: Eliminating tariffs and other trade barriers would make it more affordable for companies to do business with each other. This could lead to increased efficiency and lower prices for consumers, making goods and services more accessible.

In addition to these benefits, a free trade agreement between Russia and another country would send a positive signal to the international community, showing that Russia is willing to engage in constructive economic cooperation. This could help to improve Russia’s image on the world stage and increase its attractiveness as a trading partner.

As relations between India and Russia continue to be Atmosferic, the two sides have signed a free trade deal in a stepped-up relations in view of the Pan- Asian economic Ciapath. The free trade agreement, seen as a landmark in the bilateral relationship, provides a platform for development in the two countries.

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