Russia, India Trade Volumes on the Up
As Russian businesses continue to react to sanctions imposed by the West, its newfound trade corridors elsewhere, and especially in Asia, continue to develop. Trade between Russia and India has been steadily growing and exceeded US$10 billion in 2018. The two nations are aiming to further boost trade and encourage investment.
Vladimir Padalko, the Vice President of the Russian Chamber of Commerce and Industry, has stated that “According to Russia’s Federal Customs Service, the trade turnover between Russia and India has been hovering between US$8 billion and US$10 billion over the past several years. Machines and equipment, mineral commodities, oil and oil refining products, precious stones and metals account for the bulk of Russian exports.” He said that the leaders of Russia and India have “set a reasonable task of bringing the trade turnover between the two countries to US$30 billion, and mutual investments to US$15 billion by 2025.” Padalko added that the expansion of Russia’s exports to India is possible by increasing supplies of energy, transport, metals and mining equipment, oil, gas, coal, agriculture equipment, ferrous and non-ferrous metals, timber and newsprint, chemical products and fertilizers, and so on.
In October, during his official visit to India, Russian President Vladimir Putin said the expansion of trade and investment interactions is a priority for both nations. New Delhi had earlier suggested setting up a special economic zone for Russian companies.
The two countries also discussed creating a ‘green corridor’ for the smooth transit of goods. They want to create a list of entrepreneurs or companies whose goods will be exempt from regular customs inspections.
“Western Sanctions are having the effect of motivating Russian businesses to look to Asia for new opportunities and replace thse lost in Europe” comments Chris Devonshire-Ellis of Dezan Shira & Associates “There is plenty of room for development in the Russia-India trade space and improved interconnectivity is now making such trade routes operationally and economically viable. Russia-India bilateral trade is a growing trend.”
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