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Updates News Russia
Russian Indian
Trade & Economic Ties
Russian
Export and Import Figures During 2001-2006
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Russian Indian Projects
Russia-India:
Geopolitical Project
After
the dissolution of the Soviet Union, Trade and economic
relations between
Russia
and India were drastically affected for sometime. Since the
beginning of the 1990s till 1994, bilateral annual trade between
the two countries was less than U$$ 1 billion, whereas it had
attained more than U$$5.5 billion during the Soviet time.
However, by 1999-2000, annual commodity circulation between the
two countries stably kept at the level of U$$ 1.5 billion.
Indian basic export items to the
Soviet Union
were tea, tobacco, rice, fabrics, oils, cloths, chemicals,
medicines,etc.Even though the quality of goods was often low,Ussr
accepted the delivered items which were p[art of repayment
towards from the Soviet union. Even after the fall of Soviet
Union, India still continues import of trade including
fertilizers, iron, scrap metal, paper, and energy carriers. By
2000, Russia and India started to search additional spheres in
trade and economic cooperation as the two countries realized
that ‘traditional’ modes of imports and exports couldn’t
increase the trade levels between them.
After the first presidential visit of Mr.Vladamir Putin in
2000 to
New Delhi,the two countries agreed that U$$ 1.5 billion trade
scope,constituting 1.5-2percent from the total import and
export, is obviously insufficient. Technologies,industrial
equipments,and software were included in the first of the new
trade items. By 2002, commody circulations between
Russia and
India reached U$$2.1 billion, and in 2003 it increased up to
US$3.3 billion. Further, in 2004 the graph of trade jumped up to
US$4.2 billion. The balance of Russia- India trade during the
last few years started to lean towards Russia’s benefit, as it
used to be in the Soviet times. Russian export exceeds the
import almost five times ($2.7 billion against $584 million in
2003).
Inter-governmental Commision on Trade,
Economic,Scientific,Technical and Cultural
Cooperation,established in 1992,consisting of 11 subgroups, is
the major mechanism of economic relation between the parties.
During the tenth session of the commission at
New Delhi in
November 2004, Vice-Premier of the
Russian Federation,Alexander
Zhukov announced major directions of trade and cooperation. And
establishment of the International Transport Corrider(ITC)
–“South-North” from Europr to India,South and Southeast Asia,has
marked a significant part of mutual cooperation between the two
countries. During the Session,nuclear power engineering, new
information and communication technologies,medical research,and
space exploration were listed among the leading sphere of
high-tech partnerships.
Software Relation
As India is quickly turning into a trendsetter in software
production and new technologies, the country is rapidly growing
at an anuual rate of more than 40 percent in the field. Profits
in Indian software exports are comparable of revenues of Russian
exports of gas to the European countries. During the
presidential visit of Mr. Vladamir Putin to India in December
2004, he presented a more convenient system of paying off debts
by investing funds on joint software projects in the Indian
cyber city of Banglore.
Target
2010
Russia and India have established a new milestone in
bilateral and economic relation. India has given its consent to
its counterpart’s access to the worls Trade Organization (WTO),
and both the sides setting up a Joint Study Group(JSG) to
finalise a roadmap for increasing bilateral trade turnover to
U$$10 billion by 2010. On 6 February, 2006 at New Delhi. The
Protocol on Compltion of Bilateral Negotiations on the Accession
of Russia to the WTO, and the Memorandum of Understanding (MoU)
on Cooperation between the Ministry of Commerce & Industry of
India, and the Ministry Economic Development and Trade of the
Russian Fedeartion were signed by Shri Kamal Nath, Minister of
Commerce and Industry on behalf of the Government of India, and
by Mr.German Gref, Minister for Economic Development and Trade,
on behalf of the Government of Russian federation.
“India was Looking forward of Russia’s early Accesion to
the Wto for Further Cooperation in the multiteral trade forum on
the basis of mutual benefit”, said Shri Kamal Nath, The India
Minister of Commerce and Industry. Finalisation of the protocol
marked the completion of bilateral negotiations between the two
countries in Connection with accession to the WTO. Besides
envisaging increase in bilateral trade turnover to U$$10 billion
by 2010, the MoU signed during the bilateral meeting declared a
view to examine the feasibility of signing a Comprehensive
Economic Cooperation Agreement (CECA) between the two countries
under the JSG.
The India Minister of Commerce and Industry, Shri Kamal
Nath, requested for early finalization, and signing of
intergovernment draft agreement regarding the export of Indian
tobacco through a joint venture to be set up in Russia by an
Indian company which would procure tobacco in India. Shri kamal
Nath also requested for facilitaning set up of a joint venture
between India tea companies and Russian business houses in order
to augment export of quality tea from India.
Cooperation in diamond trade between Russia and India also
figured out in the discussion gicing the fact that India is one
of the largest processing centres of rough diamonds, and Russia
on the other hand, is one of the world’s largest producers of
rough diamonds. So, cooperation in this sector through bilateral
trade would be of mutual advantages. The protocol for
cooperation in diamonds was signed during the visit of President
Mr.Vladamir Putin to India in October 2004. In this context,
Shri kamal Nath urged the Russian Minister of Economic
Development and Trade, to expedite the decision agreed by both
sides for inclusion of MMTC India Ltd in the list of regular
participants for aution and tenders in selling rough diamonds bu
Alrosa, Russia. As, Indo-Russian trade tie is on the rise. The
significant strengthening of Russian influence in the South-Asia
achieved through all these means may lead to the reviving of the
South idea of creation of a powerful triple (Russia-India-China)
alliance.
Russian
Export and Import Figures During 2001-2006
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Russian Indian Projects
Russia-India:
Geopolitical Project
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