India and Russia Deepen Strategic Partnership
India and Russia Promote Trade in Local Currencies
India and Russia signed nine pacts at the 19th Annual Bilateral Summit between the two countries in New Delhi. Noteworthy among the pacts is the multi-billion dollar S-400 Triumf air defence missile system deal, deepening strategic bilatral ties despite the U.S. warning of sanctions.
Minister for Economic Development of Russia, Maxim Oreshkin, said that Russia is preparing a strategy to increase economic cooperation with India. He said that Russia is looking at investment protection and avoidance of double taxation agreement with India besides trade in national currencies.
The sides reviewed the progress on the achievement of the goal to increase two-way investment to USD 30 billion by the year 2025 and noted that both countries were on the way to achieving this target. In 2017 bilateral trade increased by more than 20%. Both countries agreed to work towards its further increase and diversification and expressed support to promoting bilateral trade in national currencies.
The first meeting of the Strategic Economic Dialogue between NITI Aayog of India and the Ministry of Economic Development of the Russian Federation would be held later in 2018 in Russia.
Both countries supported the early launch of the Green Corridor project aimed at the simplification of customs operations in respect of goods being transported between India and Russia. They regarded this as an important step towards enhancing mutual trade. After the start of the project Customs administrations of both countries will be committed to its further expansion.
Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu, announced the setting up of a fast track, single-window mechanism for Russian companies to be helmed by Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry. The Minister was addressing the India — Russia Business Summit organized by DIPP, Invest India and Confederation of Indian Industry (CII) in New Delhi. The Minister stated that this mechanism would be in addition to the Russia Desk that had been set up earlier to promote Russian investment in India.
Suresh Prabhu informed that work on the International North-South Transport Corridor was underway and signing of a Free Trade Agreement (FTA) with Eurasian Economic Union (EaEU), soon, will create a huge market which will benefit all the countries of the region and also promote inter-regional partnerships between the states of India and the regions of Russia.
Commerce Minister further said that there is an opportunity for India and Russia to collaborate in all fields like hydrocarbons, gold and diamond, timber, pharma, agriculture, power generation, aviation, railways and logistics.
Making the economic partnership a strong pillar of bilateral relationship is a key priority for both governments. In December 2014, the leaders of the two countries set a target of USD 30 billion bilateral trade by 2025.
This is the largest Russian business delegation to accompany Russian President, Vladimir Putin, on his two-day visit to India.
India-Russia Start-Up Summit in December 2018
The first ever India-Russia Start-Up Summit will be held in December 2018 by the Confederation of Indian Industries and Skolkovo Foundation. An online portal will be launched to enable startups, investors, incubators and aspiring entrepreneurs of both countries to interact and provide relevant resources to expand and enable globalization of start-ups.
This is part of the Joint Declaration — “India-Russia Economic Cooperation: The Way Forward” by Minister of Commerce and Industry of India Suresh Prabhu and Minister of Economic Development of the Russian Federation Maxim Oreshkin that was signed in March 2018 in New Delhi.
Diamonds and Precious Metals
India and Russia have achieved a significant level of cooperation in the diamond sector, including the signing of new long-term contracts for rough diamond supplies by PJSC ALROSA to Indian companies, opening of the ALROSA representative office in Mumbai and joint financing by the ALROSA and the Gem & Jewellery Export Promotion Council of India of the International Diamonds Producers Association on the development of programmes of generic marketing of diamonds, including in the Indian market. Both sides noted recent investments by Indian companies in the diamond manufacturing in the Russian Far East and agreed to explore opportunities of joint collaboration in precious metals, minerals, natural resources and forest produce, including timber, through joint investments, production, processing and skilled labour.
Memorandum of Cooperation between Indian Railways and Russian Railways
India invited Russian companies to participate in the development of industrial corridors in India, including in areas of road and rail infrastructure, smart cities, construction of wagons and creation of a joint transportation logistics company.
Russia offered its expertise in tax collection based on satellite navigation technologies for the realization of joint projects in India including in the framework of above mentioned industrial corridors.
Russia also expressed its interest in participating in the international competitive biddings as and when the Ministry of Railways of India decides to execute the railway speed raising projects.
A Memorandum of Cooperation was signed between the Ministry of Railways of the Republic of India and the Joint Stock Company ‘Russian Railways’ on the sidelines of India-Russia Summit on 5th October, 2018. The MoC intends to carry forward the activities taken up under the Memorandum of Understanding signed between the two countries on 24thDecember, 2015. The Memorandum of cooperation includes:
- Implementation of speed up gradation project of Nagpur-Secunderabad section ;
- Setting up of single traffic control centre for managing mixed traffic at local level;
- Best practices in freight cargo operation ;
- Development of multi modal terminals ; and
- Exchange of best technologies being practiced by the two countries.
- Training and advanced qualification improvement of Indian railway employees with the involvement of Russian railway-related higher education establishments.
The cooperation agreement was signed by Chairman, Railway Board, Shri Ashwani Lohani from Indian side and Mr. Oleg Belozerov, CEO & Chairman of Russian Railways.
A Memorandum of Understanding was signed between Ministry of Railways and Ministry of Transport of Russian Federation for development of cooperation in transport education. The MoU aims at providing organizational and methodological support to higher educational institutions implementing joint projects in the field of transport education of both countries. It also envisages cooperation between Russian University of Transport and the National Rail Transportation Institute, Vadodara to jointly organize educational transport seminars, including participation in shaping their themes, facilitating the search for partners, organizing mutual visits and preparation of methodical and regulatory documents.
The cooperation agreement was signed by Chairman, Railway Board, Shri Ashwani Lohani from Indian side and H.E. Mr. Nikolay Rishatovich Kudashev, Russian Ambassador to India from Russian side.
The President of India, Ram Nath Kovind said that India is keen to enhance its economic ties with Russia. Bilateral trade now stands at US $ 10 billion. “We need to further improve upon it to reach the target of US $ 30 billion by 2025,” he said in a statement released by the Rashtrapati Bhavan.
