India-Russia: The ties that bind

by India Inc. Staff

India’s close relations with Russia covers politics, defence, civil nuclear energy, anti-terrorism cooperation and space. The strategic partnership has endured the test of time. Here is a snapshot.

India-Russia Annual Summit: October 2016

“An old friend is better than two new ones.”
Indian Prime Minister Narendra Modi

“Industries of both countries are improving cooperation; military and technical cooperation is also improving.”
Vladimir Putin, Russian President

  • 16 agreements across several fields
  • India to spend over $5 billion to acquire S-400 Triumf air defence missile system
  • India to buy three Project 11356 frigates from Russia
  • Make in India: India-Russia to jointly manufacture 200 Kamov 226T multi-use helicopters
  • Russian oil major Rosneft bought Essar Oil in an all-cash $13 billion deal
  • Russian Direct Infrastructure Fund and India’s National Infrastructure Investment Fund will each invest $500 million to create a joint $1-billion infrastructure fund for India
  • Russian companies to invest in smart cities in Andhra Pradesh and Haryana

Main Indian Export Items to Russia:

  • Pharmaceuticals
  • Miscellaneous manufactures
  • Iron & steel
  • Apparels
  • Tea &coffee
  • Tobacco products
  • Spices

india-russia-annual-summit-october-2016

Main Indian Import Items from Russia:

  • Fertilizers
  • Electrical equipment
  • Defence and nuclear reactors
  • Mechanical appliances, automobiles
  • Iron & steel articles

Bilateral Trade (Values in US$ mn)

Year Exports To Russia Imports From Russia
2008-2009 1,096.34 4,328.28
2009-2010 980.69 3,566.79
2010-2011 1,689.43 3,600.02
2011-2012 1,778.27 4,764.31
2012-2013 2,295.68 4,231.56
2013-2014 2,121.26 3,894.40
2014-2015 2,097.01 4,249.22
2015-2016 1,587.81 4,584.98
2016-2017 (Apr-Jul) 645.81 1,638.80

Source: Department of Commerce, Ministry of Commerce & Industry, Government of India

Russia’s Sectors of Focus in India:

  • Construction and engineering services
  • Pharmaceuticals
  • IT
  • Manufacturing
  • Aviation

Initiatives to attract Russian investments:

  • The two countries signed a protocol on 24 December 2015 to simplify visa procedures for businessmen.
  • The India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) is the apex G2G forum to review economic cooperation.
  • India-Russia Forum on Trade and Investment and India-Russia CEOs Council are the two primary mechanisms to promote direct bilateral B2B contacts between India and Russia.
  • Mechanisms such as India-Russia Business Council (partnership between FICCI of India and CCI of Russia), India-Russia Trade, Investment and Technology Promotion Council (partnership between CII of India and RUIE of Russia), India–Russia Business Dialogue (partnership between CII of India and Russia’s Business Council for Cooperation with India) and India-Russia Chamber of Commerce (with focus on SMEs) supplement the efforts to build direct B2B ties.
  • India and Eurasian Economic Union (EaEU) signed a joint statement to undertake joint feasibility study for the FTA between India and EaEU.

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2018-12-05T10:59:52+00:00November 18th, 2016|2016, Around The World, India Investment Journal November Edition, Year|

About the Author: India Inc. Staff