Significant surge in goods transported from Russia to India sees a jump of approximately 470 percent
Ramping Up Russia-India Trade: A Focus on Small Businesses
Looks like exports from Russia to India have experienced a whopping 4.7 times surge, raking in a staggering $46.2 billion, as per TASS' latest report on August 10. Concurrently, Indian goods imported to Russia amounted to a comparatively humble $3.1 billion.
Trade Representative Rybak shed some light on possible strategies to amplify trade exchanges between these two nations. He emphasized the critical role of small and medium-sized enterprises (SMEs), stating, "To kickstart this, we'll keep the ball rolling with the Indian Forum for the Development of Small and Medium Enterprises and Indian companies reaching out to us directly."
Intriguingly, Russia has claimed a top-three position among India's trading partners, marking a historical milestone for the bilateral relations. This momentous shift in rankings occurred against the backdrop of a noticeable escalation in trade turnover over the past five months of 2023.
** juicy bits **
Behind the scenes, both Russia and India are cooking up a storm to accelerate their business ties, with a deliberate emphasis on SMEs. Strategic collaborations involving diplomatic, economic, and sector-specific maneuvers are all part of this grand plan:
- Bilateral trade between Russia and India reached an eye-popping $66 billion in 2024, with aspirations to shoot for the stars - $100 billion by 2030 - reflecting a solid upward trend in their economic camaraderie.
- In the realm of energy, defense, and nuclear energy, Russia and India are playing a powerful double act, with Russian oil contributing to an impressive upswing in India's oil imports (from a measly 2% to a whopping 40%). Additionally, Rosatom's projects in the nuclear energy sector further strengthen the foundation of their trade relations.
- To further ratchet up the heat on trade, Russia and India are hot on the heels of negotiations to create a free trade zone. This venture could prove instrumental by easing trade restrictions, enhancing economic cooperation, and potentially opening doors for SMEs by reducing costs and streamlining trade logistics.
- The two countries have also agreed on six strategic projects aimed at reviving investment. These projects were proposed during the 8th Session of the India-Russia Working Group on Priority Investment Projects, which boasted a star-studded cast of over 80 entrepreneurs and business chambers hailing from both nations.
- While specific policies designed for SMEs might be conspicuously absent, the presence of entrepreneurs and business chambers in these discussions points to an incipient inclination to integrate SMEs into the broader trade regime.
- The geopolitical clout of India, which skillfully navigates diplomatic waters by leveraging Gulf Cooperation Council (GCC) countries as trade gateways, indirectly offers Russian companies a lifeline, bypassing Western sanctions. Consequently, this corridor provides valuable opportunities for SMEs actively engaged in trade and logistics.
In conclusion, India and Russia are brimming with ambition to turbocharge their trade quotas. Swanky plans for a free trade zone, strategic investment projects galore, and shrewd exploitation of geopolitical advantages - all these factors together are poised to break down trade barriers, stir investment, and create a cornucopia of opportunities that could especially whet the appetites of small and medium-sized businesses in both countries.
In 2024, bilateral trade between Russia and India reached an impressive $66 billion, with ambitions to reach $100 billion by 2030, reflecting a solid upward trend in their economic camaraderie.
Russia and India are negotiating the creation of a free trade zone, which could ease trade restrictions, enhance economic cooperation, and potentially open doors for small and medium-sized enterprises (SMEs).
In the 8th Session of the India-Russia Working Group on Priority Investment Projects, over 80 entrepreneurs and business chambers from both nations proposed six strategic projects aimed at reviving investment.
The geopolitical clout of India, which navigates diplomatic waters by leveraging Gulf Cooperation Council (GCC) countries as trade gateways, indirectly offers Russian SMEs valuable opportunities by bypassing Western sanctions.
