India to double exports to Russia within three years

Russian-Indian trade turnover in 2014 reached 6.01 billion USD, not including the supply of military products. Source: Sergey Krasnouhov / RIA Novosti

Russian-Indian trade turnover in 2014 reached 6.01 billion USD, not including the supply of military products. Source: Sergey Krasnouhov / RIA Novosti

The Western sanctions imposed on Russia have opened up a number of new opportunities for Indian exporters, especially in those areas where before they could not gain access to the Russian market.

Given the current global economic situation, Indian exports to Russia may increase almost two-fold – up to four billion USD, compared to the 2.12 billion USD recorded in 2014. This is what Ajay Sahai, general director of the Federation of Indian Export Organizations (FIEO) told in an interview with TASS. 

According to him, the sanctions imposed on Russia have opened up a number of new opportunities for Indian exporters, especially in those areas where before they could not gain access to the Russian market. 

“These spheres include, for example, the supply of agricultural products from India, as well as automotive components, organic fertilizers, electrical engineering products and industrial equipment,” explained Mr. Sahai. 

He noted that one important condition for such an increase in exports should be the transition to using rupees in settlements with Russia. 

“If the current sanctions continue, then a number of Indian products will be able to gain a foothold in the Russian market,” Mr. Sahai noted. 

Mr. Sahai also told TASS that India is one of the world’s largest pharmaceutical manufacturers, and yet over the past 10 years, the country’s share in the Russian pharmaceutical products market has decreased from eight to five percent. ”We must shoot for a 20 percent share,” he said. 

According to the FIEO, Russian-Indian trade turnover in 2014 reached 6.01 billion USD (not including the supply of military products), with the trade balance being in favor of Russia. India’s exports fell by 7.6 percent compared with the previous year. 

In early December, the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) received an application from 52 Indian companies, seeking permission to supply fish to Russia. Previously, this agency had already given its nod to four Indian companies to supply their locally raised buffalo meat. 

Minister of Industry and Trade Denis Manturov, in an interview with a TASS correspondent, stated that Russia and India have set a common goal to increase the volume of their bilateral trade to 30 billion USD. 

“We have set ourselves this ambitious goal, and now to achieve it, it is important that we do not place undue restrictions on our companies, and to develop joint projects, including those in the research and development sphere,” said the Russian Minister.  

First published in Russian by Nezavisimaya gazeta.

All rights reserved by Rossiyskaya Gazeta.

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