Russia china defense
It is the exchange of Capital goods, and services
across International Borders or territories.
Increasing international trade is crucial to the continuance
Without International trade, nations would be limited to the
goods and services produced within their own borders.
It is conducted within the political and geographical boundaries of a
It can be at local level, regional level or national level.
Trade carried on among traders of Delhi, Mumbai, etc. is called home
Wholesale Trade : It involves buying in large quantities from producers
or manufacturers and selling in lots to retailers for resale to
Retail Trade : It involves buying in smaller lots from the wholesalers
and selling in very small quantities to the consumers for personal use
It refers to buying and selling between two or more countries
Export Trade : When a trader from home country sells his goods to a
trader located in another country, it is called export trade. For e.g. a
trader from India sells his goods to a trader located in China.
Import Trade : When a trader in home country obtains or purchase
goods from a trader located in another country, it is called import trade.
For e.g. a trader from India purchase goods from a trader located in
Entrepot Trade : When goods are imported from one country and then
re-exported after doing some processing, it is called entrepot trade
Memorandum of Understanding
Material Transfer Agreement
A trade agreement which is also know as Trade Pact is a wide ranging
tax, tariff, and trade treaty that often includes investment guarantees.
Any contractual arrangement between countries concerning their trade
Trade agreements may be bilateral or multilateral, that is, between two
countries or more than two.
The most common trade agreement are of the preferential and free
They are rules and regulations that govern trade. They are rules and
regulations that every Nation breaks. They are also very controversial.
Types of International Trade
It is a trading bloc that gives preferential access to certain
product from the participating countries.
This is done by reducing tariffs but not by abolishing them
A PTA can be established through a trade pact.
It is the first stage of economic integration.
The line between a PTA and a free trade area (FTA) may be
blurred, as almost any PTA has a main goal of becoming a FTA
in accordance with the General Agreement on Tariffs and Trade
A multilateral trade agreement involves three or
more countries who wish to regulate trade between
the nations without discrimination.
States get involved in multilateral agreements
because the responsibilities and risks are
distributed among the group and thus the
situation is more advantageous for individual
A bilateral agreement is made between two and
only two states. The agreement can be political,
military or economic.
The major reason states might pursue bilateral
agreements is because it is easier to negotiate
with just one country rather than with several.
1. Asia-Pacific Trade Agreement
2. Global System of Trade Preferences
among Developing Countries (GSTP)
3. Protocol on Trade Negotiations
1. India-Afghanistan (2003)
2. India Mauritius
It is a trade bloc whose member countries have signed
a free-trade agreement (FTA), which eliminates tariff, import
quotas, and preferences on most goods and services traded
It can be considered the second stage of economic
Countries choose this kind of economic integration if their
economic structures are complementary
1. India-Malaysia(separate from
FTA agreement with ASEAN)
2. India-Sri Lanka
4. India-Canada(negotiation on
1. ASEAN Free Trade Area
2. South Asian Free Trade Area
The World Trade Organization (WTO) is an
organization that intends to supervise
and liberalized international trade
The WTO oversees about 60 different agreements
which have the status of international legal texts
Member countries must sign and ratify all WTO
agreements on accession
Agreement on Agriculture.
Agreement on technical barriers to trade.
Agreement on Anti-Dumping.
Agreement on Custom Valuation.
Agreement on Rules of Origin.
President- Mr Pranab Mukherjee.
Minister of commerce – Mr Anand Sharma.
The GDP for the entire FY13 grew at 5%.
The economy of India is the 9th largest in the world by nominal
GDP and the 3rd largest by Purchasing Power Parity (PPP).
Reserves of foreign exchange and gold- $287.2 billion (31 December
Stock of direct foreign investment- $256.6 billion (31 December
Exports- $309.1 billion(2012 est.)
Exports Goods- Petroleum products, precious stones, machinery, iron and steel,
chemical ,vehicles, apparels
Exports Partners- UAE 12.7%, US 10.8%, China 6.2%, Singapore 5.3%, Hong
Kong 4.1% (2011)
Imports- $488.6 Billion (est. 2012)
Imports Goods- Crude Oil, Raw precious stones, Machinery, Fertilizers ,Iron and
Imports Partners- China 11.9%, UAE 7.7%, Switzerland 6.8%, Saudi Arabia
6.1%, US 4.9%.
Trade deficit - $191.6 billion.
India has trade deficit with 80 countries.
President- Mr. Vladimir Putin
Economy of Russia is the 8th largest economy in
the world by nominal value 6th/5th largest by
Purchasing Power Parity(PPP)
The Gross Domestic Product (GDP) in Russia
expanded 1.60 percent in the first quarter of 2013.
Complete range of mining and extractive.
Industries producing coal, oil, gas, chemicals, and
All forms of machine building from rolling mills to
high-performance aircraft and space vehicles.
Defense industries including radar, missile
production, and advanced electronic components,
Road and rail transportation equipment.
Agricultural machinery, tractors, and construction
Electric power generating and transmitting equipment;
medical and scientific instruments; consumer durables,
textiles, foodstuffs, handicrafts
Exports- $542.5 billion (2012 est.)
Exports Goods- petroleum and petroleum products, natural gas,
metals, wood and wood products, chemicals, and a wide variety of
civilian and military manufactures
Imports-$358.1 billion (2012 est.)
Import goods machinery, vehicles, pharmaceutical products, plastic,
semi-finished metal products, meat, fruits and nuts, optical and
medical instruments, iron, steel
Gross external debt $455.2 billion (2012 est.)
India, Russia mull free trade agreement.
BHEL looking to build thermal power units in Buryatia.
India’s aid on KNPP’s spent nuclear fuel.
Russia’s IG Seismic wins 3-D seismic contract in Rajasthan.
Russian Railways keen to participate in Indian track
India-Russia FGFA PAK T-50 Agreement.
India-Russia bilateral trade crosses US$ 11 billion in 2012.
India-Russia Defence Cooperation.
Agriculture Cooperation Program.
The total trade between the two countries
currently stands at $8.5 billion.
Indian investments in Russia stand at $5
billion while that of Russia in India stand at
Common target is to achieve $20 billion in
trade by 2015
BHEL looking to build thermal power units in
two thermal power plant units
The first phase of the project involves the construction of two power
units with a capacity of 240 MW each.
India’s aid on KNPP’s spent nuclear fuel
◦ Construction on the plant began on 31 March 2002
◦ The first reactor of the plant attained criticality on 13 July 2013
◦ The plant was commissioned six years after the scheduled date
◦ he original cost of the two units was 13,171 crore
◦ but it was later revised to 17,270 crore
◦ Russia advanced a credit of 6,416 crore to both the units.
◦ Cairn India Ltd has awarded a two-year contract for a 3-
dimensional seismic survey of its prolific Rajasthan oil block to
Russian firm IG Seismic Services for an undisclosed sum.
◦ The works may cover over 1,500 square kilometers
◦ he start of works is planned for the beginning of October 2013
◦ Cairn, which holds 70 per cent in the Rajasthan block, had
previously announced an investment of $ 2.4 billion in the block
◦ State-owned Oil and Natural Gas Corp (ONGC) holds the remaining 30 per cent
interest in the block
The Sukhoi/HAL Fifth Generation Fighter
Aircraft (FGFA) is a fifth-generation fighter being
developed by India and Russia
50:50 joint venture total of 500 Aircraft
FGFA) for the Indian Air Force
Russian fifth generation fighter, code-named T-50
Program costed US$ 30 billion
Unit costed US$100 million
India-Russia bilateral trade, which stood at US$
7.46 billion in 2009, US$ 8.53 billion in 2010,
and US$ 8.87 billion in 2011, has spurted to
US$11.04 billion in 2012, registering a 24.5%
growth in 2012 compared to 2011.
the target of US$ 20 billion for India-Russia
trade set for 2015
Defense cooperation is an important pillar of the India-Russia strategic
It is guided by the Program for Military Technical Cooperation signed
between the two countries which is valid, at present till 2020.
Bilateral projects currently underway include indigenous production of
T-90 tanks and Su-30-MKI aircraft, supply of MiG-29-K aircraft and
Kamov-31 and Mi-17 helicopters, upgrade of MiG-29 aircraft repair and
refit of the aircraft carrier INS Vikramaditya and supply of Multi-Barrel
Rocket Launcher Smerch.
Lease of Submarines
Integrated Long Term Program (ILTP) of Cooperation in Science & Technology.
1. Advanced Research Centre for Powder Metallurgy and New Materials
2. Polio & other Vaccine Manufacturing (Bulandshahr) Facility
3. Indo-Russian Centre for Advanced Computing Research (Moscow)
4. Indo-Russian Centre for Biotechnology (Allahabad)
5. Indo-Russian Centre for Gas Hydrates Studies (Chennai)
6. Indo-Russian Centre for Earthquake Research (New Delhi):
7. Russian Indian Centre on Ayurvedic Research (Moscow)
8. Indo-Russian Centre for Biomedical Technology (Thiruvananthapuram).
9. Indo-Russian Centre on Non-Ferrous Metallurgy (Jamshedpur)
President- Mr. Xi Jinping
2nd largest economy (nominal) and 2nd largest
in Purchasing Power Parity(PPP).
GDP growth by 7.8%.
FDI stock $116 billion.
World leader in gross value of industrial output
Mining and Ore processing
Iron, Steel, Aluminum, and other metals
Textiles and Apparel
Petroleum; Cement; Chemicals; Fertilizers
Transportation Equipment, including Automobiles, Rail cars and Locomotives, Ships,
and Aircraft; Telecommunications Equipment, Commercial Space launch vehicles,
Exports-$2.021 trillion (2012 est.)
Export goods-Electrical and other machinery, including data
processing equipment, apparel, textiles, iron and steel,
optical and medical equipment.
Imports-$1.78 trillion (2012 est.)
Import goods-Electrical and other machinery, oil and mineral
fuels, optical and medical equipment, metal ores, plastics,
In 2012, bilateral trade was USD 66 billion a decline from USD 74
billion in 2011.
The two countries have set a target of USD 100 billion by 2015 for
The signing of the MoUs between India and China is a good
beginning to address the issues India is raising with China from
time to time
India has been finding it difficult to expand its trade with China in
the pharmaceutical sector due to the complex registration process
and prolonged timelines
The average imports of medicinal and pharmaceutical products from
China during the last five years were $4,332.37 million vis-a-vis
exports from India of $692.44 million.
By end 2011, India's trade deficit was USD 27 billion.
According to Chinese trade figures released in January 2013,
the figure expanded to USD 29 billion by 2012.
As per Chinese figures, cumulative Chinese investments into
India till December 2011 stood at USD 575.70 million while
Indian investments into China were USD 441.70 million.
India-China Signed 8 MOU:-
1. The Kailash Mansarovar Yatra to the Tibet Autonomous
Region of China.
2. Work Programs of the Three Working Groups under Joint
3. MOU on Buffalo Meat, Fishery Products and Agreement on
Feed and Feed Ingredients.
4. MOU on Cooperation in the field of Sewage Treatment.
5. MOU in the field of Water Efficient Irrigation.
6. MOU on Cooperation in Mutual Translation and
Publication of Classic and Contemporary Works.
7. MOU upon Provision of Hydrological Information of
the Yaluzangbu/Brahmaputra River in Flood Season
by China to India.
8. MOU to facilitate cooperation and linkages between
Indian and Chinese cities & states/provinces
India's trade deficit with China is $40 billion
24% slump in Indian exports
Russia and China agree $270bn oil deal.
China-Russia currency agreement further threatens
Russian-Chinese trade to reach 100 billion dollars by
Russia reopens railway crossing from Maritime
Territory to China
Russia ramps up seafood exports to Asia Pacific(more
than 40 per cent in the first half of 2013.).
Russia-India-China perceives that in today’s world, it
is important to discuss the challenges of global
security and stability.
The diverse threats and risks cannot be addressed by
military power alone but need to be appraised
through political, social and economic prisms.
The population of these three countries together
amounts to around 2.4 billion, 40 percent of the
world’s total population. They cover a total area of
29.96 million square kilometers which is 22.5 per
cent of the total area of the world. Undoubtedly, the
three countries have great human resources, huge
potential of market and rich endowment of natural
Russia, India, China have agreed to provide
credit to each other in local currencies. (BRICS
March 29, 2012)
Establishing effective foreign-policy and economic
cooperation in the trilateral Russia-India-China format
Alliance framework aimed at countering the US
Need for a Multi-Polar International System
Nuclear reactors, boilers, machinery
Iron and steel
Electrical, electronic equipment
Salt, sulphur, earth, stone, plaster, lime and
West Africa Economic and Monetary Union (UEMOA)-
Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali,
Niger, Senegal & Togo
Economic Community of west Africa States (ECOWAS)-
Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, the
Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali,
Mauritania, Niger, Nigeria, Senegal, Sierra Leone & Togo
Central Africa Customs and Economic Union (UDEAC)-
Cameroon, the Central Africa Republic, Chad, the Republic of
Congo, Equatorial Guinea & Gabon
Ghana – Netherlands
United States-Morocco FTA
South Sudan-American Friendship and Trade Association
Sudan Chamber of Commerce, Industry and Agriculture
AEC – African Economic Community
EU-Egypt Association Agreement
Free trade within the bloc
Economies of scale
Market access and trade creation
Loss of benefits
Distortion of trade
Inefficiencies and trade diversion
Intra African Trade – 12% only
Limited national markets
Scheme for Least Developed Countries (LDCs)
DFTP Scheme provides duty free and
preferential market access on tariff lines that
constitute 92.5 % of global exports of LDCs.