New Delhi. In the current era of global politics and trade, India stands at a juncture where it has to strike a balance between its economic interests and strategic independence. On one hand, the much-awaited trade deal with the US has been stuck for a long time, while on the other hand, negotiations for a Free Trade Agreement (FTA) with Russia and its led Eurasian Economic Union (EAEU) seem to be gaining momentum.
Complicated trade deal with America
Trade relations between India and the US have been important, but tensions have increased in recent years. America not only stopped the trade deal negotiations midway, but also imposed first 25 percent tariff on India and then an additional 25 percent tariff on buying Russian oil. Overall, heavy duties of up to 50 percent increased pressure on Indian exporters. Conditions are being continuously imposed by America regarding the deal, due to which the talks are not progressing.
New prospects with Russia and EAEU
Meanwhile, India has adopted a strategy of looking at its options openly. The Russia-led Eurasian Economic Union, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, could become a big market for India. With a free trade deal with this group, duties on import-export will be reduced and trade will gain new momentum.
India-Russia trade has reached a record level of $68.7 billion in the financial year 2024-25. Both the countries have set a target of taking it to 100 billion dollars by 2030. Recently, the first round of meeting regarding FTA has also been held, which clearly shows that this initiative is not limited to papers only.
Strength of India-Russia relations
The friendship between India and Russia is decades old, which is not limited to just trade but also extends to defence, energy and diplomacy. India has prioritized its energy security interests by purchasing cheap crude oil from Russia. This move has been irritating America, but India has made it clear that its policies will be decided by national interests and not by external pressures.
Why is this a shock for America?
If the free trade deal between India and EAEU is successful, it will be a big message to America. India has responded to America’s policy of exerting pressure through tariffs and sanctions through alternatives. This shows that India is now adopting a multipolar trade policy instead of depending on any one country.
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