Russia Wants India Trade Barriers Removed

Russian President Vladimir Putin, speaking at the first Russian-Indian Strategic Economic Dialogue currently being held in St. Petersburg, has stated that “Russia and India should give full play to already created and new solutions in removing barriers hindering mutual trade and capital investment.”

“It is necessary both to give full play to instruments that already work having proved their efficiency, and look for new solutions, strive for removing barriers in trade and capital investments, to create the most comfortable conditions for enterprises’ operations.” Putin said. The Russian President believes that the Russian-Indian business agenda is becoming increasingly rich, including cooperation in such areas as industry, finances and cutting-edge technologies.

“Trade turnover also demonstrates positive dynamics today, which is yet another evidence of the growing interest of business circles of Russia and India. We have all possibilities to consistently move ahead, strengthen the economic basement of our relationship. For doing that, it is crucial to boost ties in all areas.” he emphasized.

The event is the initial Russian-Indian strategic economic dialogue,which will now be held annually. It is expected to become another important step towards strengthening and expanding the economic relationship between the countries, Putin said, adding that it would enable the two partners to “begin not only discussing promising plans and ideas, but launching mutually beneficial initiatives.”

Chris Devonshire-Ellis of Dezan Shira & Associates, who assist foreign investors in India and Russia, notes “India is a complex market and not always administratively sound. The Indians have their own unique and occasionally frustrating way of conducting business, with the government sector over-manned with civil servants and the practice of bakshish (small administrative bribes) very common. These problems can be overcome however the process is ingrained into the Indian business psyche and can be hard to deal with for new-to-India investors. We recommend Russian businesses seek professional assistance in India”.

Russia’s bilateral trade with India, although growing, is nowhere near its potential. Current trade levels are at about US$10 billion, while the two countries have set themselves goals of achieving bilateral trade to US$30 billion and mutual investment to US$15 billion by 2025.

Related Reading:

Russia and India to Boost Economic Cooperation and Trade

Russia Connecting With India Via International North-South Transport Corridor

An Introduction to Doing Business in India 2018-19

An Introduction to Doing Business in India 2018-19 will provide readers with an overview of the fundamentals of investing and conducting business in India. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, tax, accounting, and audit regime, annual compliance, human resources, payroll, and social insurance obligations in this dynamic market.