India and Russia are intensifying bilateral discussions to resolve over 65 non-tariff measures hindering trade, particularly in marine and agricultural sectors, as both nations advance toward a free trade agreement (FTA) with the Eurasian Economic Union (EAEU). A Ministry of Commerce official confirmed on October 21, 2025, that these talks aim to streamline export approvals, certifications, and compliance requirements, without which meaningful trade growth remains elusive.
Russia has expressed strong enthusiasm for the FTA, prompting accelerated negotiations following the August signing of terms of reference to initiate talks.This push comes amid India's efforts to diversify export markets and curb a widening trade deficit, which ballooned to $58.96 billion in 2024-25 from $56.89 billion the previous year, driven by surging imports of $63.84 billion against stagnant exports below $5 billion.
Key challenges identified by Indian exporters include mandatory listings of processing facilities, rigorous testing protocols, and approvals for items like shrimp and other seafood, which delay market entry into Russia. The Federation of Indian Export Organisations (FIEO) highlighted additional hurdles such as language barriers—requiring all documentation, packaging, and manuals in Russian—and non-recognition of Indian standards for pharmaceuticals and agricultural goods.
FIEO President S.C. Ralhan noted that Russian authorities often demand conformity to EAEU-specific standards, even for globally certified products, inflating compliance costs. Financial frictions exacerbated by international sanctions further complicate matters, including restricted banking channels, payment delays, and currency conversion risks. These barriers have stifled India's potential in Russia's $1.8 trillion economy, where demand for affordable Indian agro-products and generics remains high.
The bilateral trade landscape has evolved significantly since Russia's 2022 invasion of Ukraine, with India emerging as a key supplier of discounted oil, boosting imports but widening the imbalance. To counter this, New Delhi has promoted Vostro accounts—rupee-denominated mechanisms allowing Russian entities to hold funds in Indian banks—facilitating smoother transactions in local currencies.
Officials emphasised that resolving non-tariff issues is a prerequisite to any FTA, as tariff reductions alone cannot unlock sectors like fisheries, where India exported just $200 million to Russia last year despite global strengths. The EAEU, comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan, represents a $2.4 trillion market, offering India strategic access to energy resources and raw materials in exchange for manufactured goods and services.
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As negotiations gain momentum, success could redefine Indo-Russian economic ties, potentially tripling bilateral trade to $50 billion by 2030 per government targets. However, geopolitical sensitivities, including Western sanctions on Russia, necessitate careful navigation to avoid secondary repercussions. With the FTA framework talks slated for completion by mid-2026, both sides are prioritising mutual concessions on standards harmonisation and digital certification platforms. For Indian exporters, overcoming these impediments would not only address the deficit but also fortify supply chain resilience in a multipolar world, underscoring the duo's enduring strategic partnership forged during the Cold War era.
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