What Happened
- At the "From the Volga to the Ganges" Russian-Indian Forum organised by the National Stock Exchange (NSE), senior Russian official Sergey Glazyev — State Secretary of the Union State of Russia and Belarus — confirmed that work on a free trade agreement between India and Russia is actively underway.
- Glazyev highlighted the need to reduce dependence on US-dominated capital markets and build an alternative financial architecture.
- He proposed an intergovernmental digital settlement currency, "BRICScoin," to facilitate cheaper cross-border transactions within the BRICS bloc and reduce currency capital challenges.
- Pilot projects for digital national currencies are being discussed as part of broader financial integration efforts.
- India and Russia's bilateral trade reached approximately $69 billion in 2024, driven largely by Indian imports of discounted Russian crude oil.
Static Topic Bridges
India-Russia Strategic Partnership: Depth and Evolution
India and Russia share a "Special and Privileged Strategic Partnership," elevated to this status during the 22nd India-Russia Annual Summit in 2021. The bilateral relationship traces back to the 1971 Indo-Soviet Treaty of Peace, Friendship and Cooperation. Russia remains India's largest supplier of defence equipment — supplying platforms including the BrahMos missile (a joint venture), S-400 Triumf air defence systems, and nuclear reactors (Kudankulam). After 2022, economic ties deepened dramatically as India absorbed discounted Russian crude oil shunned by Western sanctions. Over 90% of bilateral trade is now settled in Indian rupees or Russian roubles.
- India-Russia relations: "Special and Privileged Strategic Partnership" (since 2010; upgraded 2021)
- 1971 Indo-Soviet Treaty: 20-year friendship and cooperation pact — foundational document
- Russia's share in India's crude oil imports: rose from ~2% pre-2022 to ~35-40% post-sanctions
- India-Russia bilateral trade (2024): ~$69 billion; India's imports dominate ($64 billion)
- BrahMos missile: joint venture — Russia-India, range 290-800 km
Connection to this news: The FTA discussions represent an effort to institutionalize and deepen the trade relationship that expanded rapidly on an ad hoc basis after 2022.
Free Trade Agreements: Instruments and India's FTA Architecture
A Free Trade Agreement (FTA) is a treaty between two or more countries to reduce or eliminate tariffs and non-tariff barriers on goods traded between them. A more comprehensive variant is a Comprehensive Economic Partnership Agreement (CEPA) or Comprehensive Economic Cooperation Agreement (CECA), which covers goods, services, and investment. India has FTAs/CEPAs with ASEAN, Japan, South Korea, UAE, and Australia (interim). FTA negotiations with the UK, Canada, and the EU are ongoing. An India-Russia FTA would be negotiated through the India-Eurasian Economic Union (EAEU) framework, as Russia is an EAEU member — along with Belarus, Kazakhstan, Kyrgyzstan, and Armenia.
- Eurasian Economic Union (EAEU): established January 1, 2015; members: Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia
- India formally began FTA negotiations with EAEU — ADB's Asia Regional Integration Center tracks this as an ongoing negotiation
- CEPA vs FTA: CEPAs cover services and investment in addition to goods tariffs
- India's existing FTAs: ASEAN (2009), Japan (2011), South Korea (2009), UAE CEPA (2022), Australia Interim ECTA (2022)
Connection to this news: Any India-Russia FTA would be structured through the EAEU framework, making it a multilateral agreement with significant geopolitical and economic implications extending beyond the bilateral relationship.
De-Dollarisation and BRICS Monetary Alternatives
De-dollarisation refers to efforts by countries to reduce their dependence on the US dollar in international trade, reserves, and financial settlements. The US dollar currently constitutes about 58% of global foreign exchange reserves and is used in approximately 88% of global trade transactions. BRICS nations (Brazil, Russia, India, China, South Africa, plus new members from 2024) have discussed creating alternative payment systems. The proposed BRICScoin is a concept for an intergovernmental digital settlement currency to be used among BRICS members. India has been cautious about full de-dollarisation, maintaining large USD-denominated reserves, but supports rupee-based trade as a pragmatic alternative.
- USD share of global FX reserves: ~58% (IMF COFER data, 2025)
- USD's share in global trade invoicing: ~88% (BIS estimates)
- India's forex reserves: over $650 billion (2025), largely USD-denominated
- India-Russia trade: over 90% now settled in rupees/roubles (Economic Times reports)
- BRICScoin: proposed intergovernmental digital settlement currency — concept stage, not operational
Connection to this news: Glazyev's BRICScoin proposal reflects the broader BRICS push to build transaction infrastructure that bypasses SWIFT and USD, in which India plays a pivotal but cautious role.
Key Facts & Data
- India-Russia bilateral trade (2024): ~$69 billion
- India's imports from Russia (2024): ~$64 billion (mostly crude oil)
- Russia's share in India's crude oil imports (post-2022): ~35-40%
- EAEU established: January 1, 2015 (headquarters: Moscow)
- EAEU members: Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia
- India-Russia trade: 90%+ settled in rupees/roubles
- JCPOA withdrawal date for context: May 2018 (affected Iran oil, redirected India toward Russia)
- BRICScoin: proposed, not yet operationalized