Oil era over? India eyes mega trade deal with Russia; after US and Europe, another big market set to open | World News

New Delhi: India and Russia are preparing for a new trade agreement. Trade between the two countries will no longer depend only on oil. Both sides are now discussing a larger business deal. The first official update in this regard came from Moscow, where Russian Deputy Prime Minister Alexey Overchuk announced a proposed preferential trade agreement between India and the Eurasian Economic Union.

This agreement is expected to create new business opportunities for Indian MSMEs and provide them with better access to markets in the Eurasian region.

This development comes at a time when India’s access to trade is increasing across regions. Relations with Western economies have gained momentum in recent months and many talks have moved to advanced stages.

In the same window, there was pressure from Washington to continue India’s energy imports from Russia. New Delhi maintained its position and reiterated that all external partnerships would be guided by national interests. Discussions with Russia regarding the proposed agreement show that India still remains true to this stance in its commercial and strategic decisions.

Speaking at a business meeting in Moscow, the Russian deputy prime minister stated that the first round of negotiations on the preferential trade agreement was completed on solid ground. Expressing confidence in the progress, the official said that both parties are ready to conclude the agreement within a practical time frame.

The proposed agreement goes beyond a simple agreement between two countries. Russian companies will have access to India’s large consumer market. At the same time, Indian exporters will gain wider access to the Eurasian region.

The total market under this agreement will reach approximately 2.2 billion people. A market of this size is important at a time when tariffs are increasing, supply chains are expanding and global trading power is changing.

Negotiations are ongoing to establish a free trade zone structure that will include the Eurasian Economic Union, whose members include Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. The first round of talks with this group has been completed. It laid the groundwork for more detailed discussions on tariffs and market access.

The goals of expanding trade are ambitious. The leadership in New Delhi and Moscow has set a goal of increasing bilateral trade to $100 billion by 2030. Growth is already visible. Trade between the two countries reached $68.7 billion in 2024-25. Most of it came from energy trading, and other sectors are also starting to contribute.

Both countries plan to cooperate in the fields of pharmaceuticals, agriculture, industrial machinery, chemistry and technology in the future. Energy and defense will continue to be important, with a focus on expanding trade to more sectors and higher value exports.

Financial regulations between the two countries are also changing. Both sides are working to expand trade agreements in their national currencies. There is greater focus on rupee-ruble payment channels in response to Western sanctions and banking restrictions.

At the same time, alternative logistics networks are being strengthened through the International North-South Transport Corridor, a route that aims to shorten transit time and reduce freight costs between South Asia and the Eurasia region.