Russia has signalled progress in talks with India, with Deputy Prime Minister Alexey Overchuk highlighting potential opportunities for Russian businesses across multiple sectors
Russia has said it is optimistic about concluding a preferential trade agreement with India, signalling progress in negotiations that could significantly expand bilateral economic ties as New Delhi simultaneously pursues trade talks with the United States and the European Union.
Speaking at the forum Architecture of the Future: Russian Business in Key Multilateral Platforms, Russian Deputy Prime Minister Alexey Overchuk said discussions with India had crossed an important milestone.
“We’re currently negotiating with India. The first stage is over. We’re quite optimistic about it,” Russian state news agency TASS quoted Overchuk as saying.
He added that a successful deal would create substantial opportunities for Russian firms.
“If the agreement is signed with India, Russian businesses will have access to a market of 2.2bn people,” Overchuk said.
India has been engaged in talks with the Eurasian Economic Union (EAEU) on a preferential trade framework designed to lower tariffs and ease market access for goods and services.
The proposed agreement aims to boost bilateral trade beyond traditional sectors such as energy and defence, and expand cooperation in manufacturing, pharmaceuticals, agriculture, and technology.
Negotiations with the EAEU have accelerated as both sides seek to diversify trade routes and reduce reliance on a narrow set of markets amid global economic uncertainty.
India’s trade engagements with US
Earlier this month, Donald Trump and Narendra Modi announced a long-anticipated interim trade agreement, ending months of tariff tensions. Under the deal, the United States agreed to lower reciprocal tariffs on Indian goods to 18% and remove the punitive levy on Russian oil imports. India, in turn, indicated it would expand market access and increase imports of US energy, technology, agricultural, and industrial products.
A key political element of the talks involved Washington’s demand that New Delhi halt or significantly reduce purchases of Russian crude, a point stressed by US officials as a condition for tariff relief. India has clarified that its energy procurement decisions will be guided by market factors and strategic autonomy.
India-EU free trade breakthrough
The India-US pact follows a major breakthrough with the European Union, which on January 27, 2026, finalised a comprehensive free trade agreement with India after nearly two decades of negotiations.
The deal aims to phase out tariffs on most goods, improve market access for services and investment, and deepen economic cooperation across multiple sectors. It positions the EU as a key partner for India in balancing China’s influence and strengthening Indo-European economic ties.
With inputs from agencies
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