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Russian Export and Import Figures During 2001-2006 || 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 || Russian Indian Projects
Russia-India: Geopolitical Project
