Economic relations India–Russia relations

indian , russian diplomats holding talks @ hyderabad house in new delhi



the india trade promotion organization in moscow, russia



prime minister modi , president putin @ world diamond conference in new delhi in 2014



russian exports india in 2012



indian exports russia in 2012



russian exports india 1995 2012



indian exports russia 1995 2012

bilateral trade between both countries concentrated in key value chain sectors. these sectors include highly diversified segments such machinery, electronics, aerospace, automobile, commercial shipping, chemicals, pharmaceuticals, fertilisers, apparels, precious stones, industrial metals, petroleum products, coal, high-end tea , coffee products. bilateral trade in 2002 stood @ $1.5 billion , increased on 7 times $11 billion in 2012 , both governments setting bilateral trade target of $30 billion 2025. bilaterial bodies conduct economic relations between 2 countries include irigc, indo-russian forum on trade , investment, india-russia business council, india-russia trade, investment , technology promotion council, india-russia ceos council , india-russia chamber of commerce.

both governments have jointly developed economic strategy involves using number of economic components increase future bilateral trade. these include development of fta between india & eeu, bilateral treaty on promotion , protection of investments, new economic planning mechanism built irigc, simplication of customs procedures, new long term agreements in expansion of energy trade including nuclear, oil , gas. finally, long term supplier contracts in key sectors such oil, gas , rough diamonds. companies such rosneft, gazprom, essar & alrosa act long term suppliers respectively.

russia has stated co-operate india on make in india initiative engagement in development of smart cites , dmic, aerospace sector, commercial nuclear sector , enhancement in manufacturing of russian military products through co-development , co-production. russia agreed participate in vast, on $100 billion, dmic infrastructure project connect delhi , mumbai railways, highways, ports, interconnecting smart cities , industrial parks. russian president vladimir putin stated in interview 1 of government’s priorities of building smart city in india, smart city on basis of russian technologies. afk sistema primary russian company involved in project due previous experience in smart city projects in ufa, kazan , rostov.

both countries have agreed work in aerospace sector co-development , co-produce aircraft, examples include sukhoi superjet 100, ms-21, fgfa, mta , kamov ka-226. of co-developed aircraft jointly commercially exported third countries , foreign markets e.g. fgfa , kamov ka-226. president of russia s uac mikhail pogosyan stated in interview, planning sell in india 100 passenger aircraft 2030, account 10 percent of indian market of airliners in segment , further stated, unprecedented scope of russian-indian cooperation in military aviation has created scientific , engineering basis undertaking joint projects in civil aviation.

india world s largest cutting & polishing centre diamonds. both countries have agreed streamline bilateral trade in diamonds through reductions in regulations , tariffs. indian prime minister modi stated in interview, made 3 proposals president putin. first, alrosa have direct long-term contracts more indian companies. pleased know moving in direction. second, want alrosa , others trade directly on our diamond bourse. have decided create special notified zone mining companies can trade diamonds on consignment basis , re-export unsold ones. third, asked reform regulation russia can send rough diamonds india , reimport polished diamonds without duties . analysts predict through streamlined procedures , initiatives bilateral trade in area increase.

russia has agreed build more 20 nuclear reactors on next 20 year. russian president stated in interview, contains plans build on 20 nuclear power units in india, cooperation in building russia-designed nuclear power stations in third countries, in joint extraction of natural uranium, production of nuclear fuel , waste elimination. in 2012 gazprom group , india s gail agreed lng shipments india of 2.5 million tons year period of 20 years. lng shipments contract expected begin anytime between 2017-21. indian oil companies have invested in russia s oil sector notable example ongc-videsh has invested on $8 billion major stakes in oil fields such sakhalin-1. in joint statement released both governments stated, expected indian companies participate in projects related new oil , gas fields in territory of russian federation. sides study possibilities of building hydrocarbon pipeline system, connecting russian federation india.

officials both countries have discussed how increase co-operation between countries respective industries. russian minister of communication nikolai nikiforov stated in interview, development of products , software has traditionally been strong point of india. welcome possible joint projects in field , closer contacts between russian , indian companies.

due india simplifying recent visa rule changes russians travelling india, number of tourists increased on 22%. in 2011 indian consulates in moscow, vladivostok , st. petersburg issued 160,000 visas, increase of on 50% compared 2010.

russian imports india amounted $3.1 billion or 1% of overall imports, , 0.7% of india s overall exports in 2014. 10 major commodities exported india russia were:

russian exports india amounted $6.2 billion or 1.3% of overall exports, , 0.9% of india s overall imports in 2014. 10 major commodities exported russia india were:

free trade agreement (fta)

the formal process fta between india , eeu begun @ 2014 indo-russian summit in new delhi.



signing of indian-russian documents @ 2015 indo-russian summit in moscow.

both governments have long viewed bilateral trade below optimal potential, long term way of rectifying through having free trade agreement (fta). both governments have set joint study group (jsg) negotiate specifications of agreement, final agreement signed between india , eurasian economic union of russia part of (also including kazakhstan, armenia, kyrgyzstan & belarus). thereby, indo-russian fta result in bigger free trade agreement including india, russia, kazakhstan, armenia, kyrgyzstan & belarus. predicted once fta in place bilateral trade increase manifold, thereby increasing importance of economics in bilateral ties.

the table below shows recent indo-russian bilateral trade performance: