Trade and economic cooperation between India and Russia witnessed a steady rise over the last decade and hold a scope for manifold expansion in the coming times, say by 2017, their bilateral trade could touch US$10 billion by 2017 before scaling at respective levels of US$20 billion and US$30 billion in 2022 and 2025 against the present estimates of US$6 billion, according to PHD Chamber of Commerce and Industry.
Senior Vice President PHD Chamber Mahesh Gupta said that though India and Russia have eventually given new dimensions to bilateral relations in the development of defence, energy, science and technology, current level of bilateral trade at US$6bn is not consistent with the potential trade trajectory. Even though the bilateral relations between the two nations have widened their basket, yet India is not among Russia’s key trade partners.
India’s position in trade with Russia’s is not strong as compared with EU and USA. India’s share in Russia’s total trade is 1.2% as compared with 49% of EU and 3.3% of USA.
Russia’s share in India’s trade is meagre 0.8% as compared with 13% of EU and 8% of USA.
India’s top export items to Russia are pharmaceuticals, electrical machinery, iron & steel, coffee, tea, nuclear reactors, aircraft, vehicles, edible fruit & nuts, among others.
India’s top import items from Russia are precious stones, mineral fuels, fertilisers, copper & articles, iron & steel, rubber products, paper products, salt and inorganic chemicals, among others.
Both the nations have undertaken initiatives to promote bilateral investments, primarily through facilitating Government to Business and Business to Business contacts, said Mr. Gupta.
Scope of expansion for investments exist in hydrocarbons, power, coal, nuclear power, fertilizers, IT, pharmaceuticals, mineral and metallurgy, among others, he said.
Russia’s restrictions on import of food items from EU and USA can be a great opportunity for India to increase its exports of food products to Russia.
Also there are immense opportunities in machinery, electrical and electronic equipments and pharmaceuticals to extend exports to Russia
Currently, Russia imports these items from Western markets. But, these items are among the principle exports of India.