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Russia India Trade

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Tells on India-Russia Trade, its potential and way forward

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Russia India Trade

  1. 1. India-Russia Trade K.Hrushikesh Reddy
  2. 2. History • Afansy Nikitin visit to Vijaynagara empire-16th century • Cooperation in various fields-ideology, defence,space,energy, diplomatic,strategic but never in trade • India is the second largest market for the Russian defence industry
  3. 3. Current Scenario • Indo-Russia Trade $10bn in 2013-$7bn imports • Russia is ranked 18th largest trade partner for India,India is 20th for Russia • Indo china-$60bn,Sino-Russia $100bn • RCA India Russia Textiles Metal & Metal products Leather Products Fuels Gems and jewelry Fertilizers Agro based Wood,pulp,paper
  4. 4. Exports Product 2008 2013 Fish & crustacean, mollusc & other 28667.360 40318.727 Rubber and articles thereof. 24684.310 44100.031 Articles of iron or steel. 36004.948 50802.286 Tobacco and manufactured tobacco pds 53887.558 113893.143 Coffee, tea, matï and spices. 116235.921 131715.552 Art of apparel & clothing access, n 51348.773 135709.406 Iron and steel. 65336.681 149134.818 Nuclear reactors, boilers, mchy & m 117199.229 159296.805 Electrical mchy equip parts thereof 116973.349 382350.772 Pharmaceutical products. 532631.941 818875.459
  5. 5. Imports Product 2008 2013 Rubber and articles thereof. 30873.935 55530.565 Printed books, newspapers, pictures 110086.347 75693.109 Articles of iron or steel. 133708.800 114083.529 Inorgn chem; compds of prec mtl, r 31597.046 121337.819 Paper & paperboard; art of paper pu 125689.319 125702.362 Iron and steel. 549979.377 137532.872 Mineral fuels, oils & product of th 71989.467 189513.313 Fertilisers. 1135448.788 278333.154 Electrical mchy equip parts thereof 519976.283 545466.387 Nuclear reactors, boilers, mchy & m 800306.227 750436.034 Natural/cultured pearls, prec stone 91260.480 870854.922
  6. 6. Barriers • Geographical distance • Language and Information barriers • Low people-people contact, Cultural exchange- compare it with US • Trust of business partners, business interactions • People movement-visa restrictions-recently resolved • Financial Services
  7. 7. Barriers • Stringent Certification & phytosanitary norms • Transportation and logistics problem in Russia ▫ long queues, winter freezing,expensive warehousing ▫ Encouraged trade via other countries-Netherlands • Shrinking economy, Fall in oil prices • Volatility of Rupee and Rouble • No Trade agreements, High tariffs in select sectors
  8. 8. Sector wise out look • Pharmaceuticals- Mutual Recognition Agreements for conformity assessment,6% share • Tea-Branding, promotion of Indian Tea,tariffs- bulk tea(0%) vs packaged tea (20%) • Bovine meat & Egg powder- Recent ban of Euro exports, high standards • Ready Made Garments- Knowledge of Russian market, transportation cost, consumer preferences
  9. 9. Sector wise outlook • Automobile- potential, high tariff(20%) • Diamond trade- 14/15 rule, but 67% of diamond exports to other nations by Russia. Have long term contracts between Russian and Indian Companies • Diary products & Fruits-Diary export increased 50 times in 5 yrs. India is replacing EU in Fruit market • Tobacco- India’s share is declines from 30 % in 1980s to 8% now • Leather: high tariff(10-20%), substitutes from japan,competition
  10. 10. Services • Slight balance in favour of India • IT services-cooperation low –fear of competition • Tourism- Russian tourists growing at 8-10% per year. Goa,Kerala are the destinations • Potential in Health services- ayurveda, naturopathy & modern medicine • Entertainment-lot of potential by dubbing, popular before West penetrated
  11. 11. Services • Transport, Engineering-Russia can provide expertise, help in modernization of our ports, roads, aviation • Education-mutual recognition of degree, advertising • Urgent Need to strengthen Transport & Financial Service trade-have multiplier effect for industries ,tourism & IT
  12. 12. Suggestive Measures • Speeding up North South International Corridor • Finalizing Free trade agreement with Eurasia • Framework to trade in rupees and roubles • More cultural contact, business interaction, trade fairs, seminars-convert positive opinion to trust • Transform G-G to G-B and B-B economic deals
  13. 13. References • http://in.rbth.com/economics/cooperation • http://commerce.nic.in/publications/Report_In dia_Russia_Joint_Study_Group_10_9_2007.p df?id=15
  14. 14. Thank You Any Questions

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