Russia eyes $20bn bilateral trade with India by 2015

Backed by a 30 per cent increase in trade with India between January and August 2012 compared to the corresponding period last year, Russia is now looking to expand the scope of cooperation in trade with India to sectors such as power engineering, oil and gas, aircraft building, agriculture, processed food, banking and gems and jewellery.

Speaking at a meeting of the members of the Russian Business Mission to India with Indian industry representatives in New Delhi on Tuesday, Mikhail Rapota, Trade Commissioner of the Russian Federation in India, said that the scope for Russia-India cooperation in trade was immense in these sectors.

Addressing a meeting organised by FICCI in association with the Ministry of Economic Development of the Russian Federation and The Trade Representation of the Russian Federation in India, Rapota said, "In 2011, bilateral trade turnover stood at $8.9 billion and a 30 per cent increase in trade has already been witnessed in January-August 2012 as compared to the corresponding period last year.” Trade collaborations between the two countries already exist in sectors such as mining, metals, pharmaceuticals and communications.

Russia is also looking at a trade target of $20 billion with India, according to Petr Fradkov, Director General, Export Insurance Agency of Russia (EXIAR). "Trade target between India and Russia is $20
billion by 2015," he said, adding, “Medium size companies in the market are not in a position to either discover new instruments of fund-raising or find new partners for business. Therefore, joint ventures should be created at all levels of business.”

Yaroslav Tarasyuk, Head of Division, Department of Asia and Africa, Ministry of Economic Development of the Russian Federation, observed that there was ample room for improvement of business. "The Russian Business Mission’s agenda is to bridge the gaps to facilitate two-way trade,"
he said. He added that there was lack of business-to-business interactions. "Hence, the focus now is on B2B interactions and it has been able to garner good response from the Russian industry,” Tarasyuk
 argues.

R P Singh, President, Sun Group, said in spite of good relations between the two countries, business did not grow the way it should have been.

“For trade and commerce to develop, joint cooperation is needed along with stronger interactions between the business communities of the two countries. Joint ventures can really play a significant role in improving business,” he observed.

Earlier, at the 18th India-Russia Inter-Governmental Commission on Monday, the two nations had expressed the desire to strengthen and expand trade and economic cooperation. The two sides also identified new areas of cooperation.