Stories
India Seeks Defence Industry Input for Russia-led Trade Deal
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CNBC TV18•23-09-2026, 19:06
India Seeks Defence Industry Input for Russia-led Trade Deal
- •The PHD Chamber of Commerce and Industry is gathering feedback from defence companies on tariff lines for a proposed Free Trade Agreement (FTA) with the Russia-led Eurasian Economic Union (EAEU).
- •India and the EAEU, comprising Russia, Kazakhstan, Armenia, Belarus, and Kyrgyzstan, launched FTA negotiations on November 26, 2025.
- •Russia dominates India's trade with the EAEU bloc, accounting for $68.72 billion in bilateral trade in 2025, with India importing $26.25 billion worth of defence products from the bloc.
- •The FTA aims to boost India's exports of pharmaceuticals, chemicals, engineering goods, and other products to Russia and EAEU markets, while narrowing its $59 billion trade deficit with Russia.
- •Key issues in negotiations include addressing non-tariff barriers, such as registration requirements and regulatory overlap, and exploring a separate services agreement with Russia.
Key Questions Answered
The PHD Chamber of Commerce and Industry sought inputs from defence companies to review relevant tariff lines and submit comments and justifications for the proposed free trade agreement between India and the Russia-led Eurasian Economic Union (EAEU)alyzed by the Ministry of Defence.
Bilateral trade between India and Russia stood at $68.72 billion, consisting of $4.88 billion in Indian exports and $63.84 billion in imports, while India seeks to narrow its $59 billion trade deficit with Russia.
India has flagged over 65 non-tariff barriers affecting marine exports, while pharmaceutical exporters face issues such as registration requirements, clinical trials, market access, price registration, and complex regulatory overlaps.
