Russia ‘optimistic’ about preferential trade deal with India, eyes access to 2.2 billion market

File photo of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.

Russia has said it is optimistic about concluding a preferential trade agreement with India, signalling progress in negotiations that could significantly expand economic ties between the two countries even as New Delhi balances parallel 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 talks with India had crossed an important milestone. “We're currently negotiating with India. The first stage is over. We're quite optimistic about it,” Overchuk said, according to Russian state news agency TASS.

He added that a successful agreement would open vast opportunities for Russian companies. “If the agreement is signed with India, Russian businesses will have access to a market of 2.2bn people,” Overchuk said.

India-Russia trade talks and the EAEU

India has been in discussions with the Russia-led Eurasian Economic Union on a preferential trade framework that would lower tariffs and ease market access for goods and services. The proposed deal is aimed at boosting bilateral trade beyond traditional sectors such as energy and defence, and expanding cooperation in manufacturing, pharmaceuticals, agriculture and technology.

Negotiations with the EAEU have gained momentum as both sides look to diversify trade routes and reduce dependence on a narrow set of markets amid global economic uncertainty.

India's trade deals with US and EU

Earlier this month, US President Donald Trump and PM Modi announced a long-anticipated interim trade agreement, ending months of tariff tensions. Under the deal, the United States agreed to reduce its reciprocal tariffs on Indian goods to 18 per cent, while removing the punitive tariff for buying Russian oil.  India, meanwhile, signalled it would expand market access and increase imports of US energy, technology, agricultural and industrial products. A central political element of the talks was Washington’s insistence that New Delhi halt or significantly reduce purchases of Russian crude, a point emphasised by US officials as a condition for tariff relief, though India has clarified that energy procurement decisions will be based on market considerations and its strategic autonomy.

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 negotiation. The India-EU deal aims to phase out tariffs on a vast majority of goods, improve market access for services and investment, and deepen economic cooperation across sectors, positioning the bloc as a key partner in balancing China’s influence and strengthening Indo-European economic links.