India, Russia target $20 billion trade by 2015

The Union Minister of Commerce, Industry and Textiles Mr. Anand Sharma addressed a group of political and business leaders from Russia and India at the third “India-Russia Business Dialogue”, which was held under the umbrella of the St. Petersburg International Economic Forum 2012 on June 21.

Speaking on the historical bonds between the two nations, Mr. Sharma said that India and Russia today share a “special and privileged strategic partnership” which permeates the entire spectrum of economic activity. Highlighting the fact that the Gross Domestic Product of both the countries is over US$ 3 trillion, Mr. Sharma further added that the bilateral trade between India and Russia in 2011 was in the range of US$ 9 billion. “We have set for ourselves an ambitious target of reaching US$ 20 billion by 2015. However, there is a need to diversify the trade basket between our countries as the current profile of trade is dominated by commodities with large imports of iron, steel, fertilizer and oil from Russia. We need to expand the trade basket to have more value added products,” he underlined during the event.

India is also planning to invest US$ 1 trillion in the infrastructure sector alone in the next five years. For this, Mr. Sharma welcomed Russian participation to build a strong infrastructure base in India. “We are also building gas and oil pipelines and Russian companies have considerable expertise in pipeline construction technologies which will greatly be valued. In the telecom sector, of course, we have seen the emergence of flourishing partnerships between India and Russia which will see investments of over US$ 1.5 billion in the coming years” said Mr. Sharma.

During his address, Mr. Anand Sharma informed that India aims to double its food processing capabilities in the next five years with the establishment of 64 fully equipped Agro Processing Zones and Food Parks. He said that Russia “can be an invaluable partner to develop cross sect oral linkages in the entire value addition chain from agriculture to retail, packaging and logistics.”

“I am confident that the coming weeks will see the emergence of political consensus on liberalizing FDI in Multi-brand retail which will open immense opportunities,” Mr. Sharma added. With the rolling out of the National Manufacturing Policy last year, Mr. Sharma showed his interest to invite Russian companies both in the development of industrial townships as well as in investments which will flow into these zones.

We are keen to participate in the Parma 2020 program of Russia where Russian Government has ambitious plans in developing pharmaceutical industry with an objective to reducing healthcare cost,” said Mr. Sharma. The event was co-chaired by the Deputy Prime Minister of Russian Federation, Mr. D. Rogozin; Mr. Theremin, Chairman, Business Council for Cooperation with India; Mr. Adi Godrej, President, CII; Mr. Ajai Malhotra, Ambassador of India to Russian Federation and business leaders from Russia and India attended the event.

India seeks favourable terms for pharma export to Russia

In his bilateral meeting with Mr. D. Rogozin, Deputy Prime Minister of Russian Federation, at St Petersburg on June 21, 2012, Mr. Anand Sharma pushed opening up opportunities to Indian pharma companies for favourable joint venture partnerships in Russia.

The Indian Minister pointed out that the Indian pharmaceutical products are of international standards and cheaper than other markets on an average by 30-40%. He outlined the specific steps that need to be taken in this direction. Steps like participating in the Pharma 2020 Programme of Russia by setting up production units in Russia would require suitable facilitation by Russia.

He also asked for streamlining registration process; sharing of information on drugs that are imported by Russia and on assessed production volumes of strategically identified medicines.

“We are keen to participate in the Pharma 2020 program of Russia where Russian Government has ambitious plans in developing pharmaceutical industry with an objective to reducing healthcare cost. I believe that India is best suited partner with Russia in this endeavour and I would like our industry and regulatory bodies to work together to see that we are able to achieve the social health objective,” said Mr. Sharma.
Both sides agreed for holding of the first meetings of the JWG on Modernization and Industrial Cooperation in July- August.

“I think it is an excellent opportunity where the government and the corporate sector from both sides can get together and identify new opportunities. This should have a catalyst effect on enhancing our trade and business links,” said Mr. Sharma. JWG would function in the PPP format and will have sub-working groups on mining, fertilizers, modernization (this sub-group will take up issues for enhancing engagement in sectors like, infrastructure, energy, transportation and other core industries). The last Sub group is on aviation.

The Russian proposed to take the talk further on joint production of civilian aircraft. The first formal contact between the two sides on this issue took place during then Russian Deputy Minister Mr. Montero’s meeting with Secretary (Civil Aviation) on Mar 28, 2012 in New Delhi. The Indian Minister said that India will be guided by the experts on how to take this further and sub group on Aviation will, among other issues, take this up.

It was noted that that the level of bilateral trade and investment between India and Russia remains below its potential. Both sides need to make sincere and concerted efforts and to take specific measures including thrust areas, to achieve the target bilateral trade figure of US$ 20 billion by 2015. Later, Mr. Sharma also met Mr. Olaf Koch, CEO and Chairman of the Management Board of METRO AG. Mr. Koch expressed happiness over the performance of their investment in India and apprised the Minister about the expansion plans in India. He informed that soon they will raise the number of their stores from 10 to 16 in the country.

Mr. Sharma welcomed their decision to procure marine products from India for their global operations and assured them all the help from official/government side.

Ambassador inaugurates ICOSAL-10 Conference

The 10th International Conference on South Asian Languages & Literature (ICOSAL-10) was held at the Institute of Asian & African Studies, Moscow State University in Moscow from July 5 to 7, 2012. The Conference was organised jointly by the Moscow State University and Russian State University for the Humanities (RSUH), with the support of the Ministry of External Affairs (Hindi Division), Indian Council for Cultural Relations (ICCR), New Delhi, and the Embassy of India, Moscow. Scholars from Russia, the Indian sub-continent, USA, Canada, Japan and European countries, participated in ICOSAL-10.

His Excellency Mr. Ajai Malhotra, Ambassador of India to the Russian Federation, inaugurated ICOSAL-10 on July 5, 2012. He recalled that prominent universities in India and Russia took the initiative in 1997 to promote South Asian languages and literature and have since organised ICOSAL on a fairly regular basis.

He congratulated ICOSAL on its 10th convocation and expressed happiness that it was being held this year in the context of the celebration of the 65th anniversary of India-Russia Diplomatic Relations. Ambassador Malhotra pointed out that more Indian literature, ancient and modern, has been translated into the Russian language, than any other foreign language. Read Full Story