Finance
On Wednesday, India and Russia decided to increase their bilateral commerce to over $100 billion by 2030. They want to do this by reviving investments, trading in national currencies, and expanding their collaboration in a variety of industries, including infrastructure, agriculture, and energy.
The 22nd Annual Bilateral Summit between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi concluded with a joint statement from the two leaders reiterating their commitment to the development of the special and privileged strategic partnership and promising to further boost bilateral interaction by advancing trade and economic cooperation between Russia and India.
Both sides reached an agreement on nine major areas of cooperation, including trade, the use of national currencies for trade settlement, increased cargo turnover through new routes like the North-South Transport Corridor, increased trade in food, fertilizer, and agricultural products, deeper cooperation in the energy sector, including nuclear energy, promotion of investments and joint projects across the digital economy, cooperation on the supply of medicines, and the development of humanitarian cooperation.
he leaders agreed to aspire “for elimination of non-tariff trade barriers related to bilateral trade between India and Russia” and continue “dialogue in the field of liberalisation of bilateral trade, including the possibility of the establishment of the EAEU-India Free Trade Area”.
This to achieve mutually agreed trade volume of more than $100 billion by 2030, including increased supplies of goods from India to achieve balanced bilateral trade. Also, reinvigoration of investment activities within the framework of the special investment regimes was agreed. They agreed on “development of a bilateral settlement system using national currencies”, the joint statement said.
This implies that Indian rupees may be used to pay for any purchases India makes from Russia, including crude oil.
Russia can then use this money to complete payments for goods imported from India. It is also feasible to employ Russian rubles in the opposite way.
The two leaders agreed for “increase of cargo turnover with India through the launch of new routes of the North-South International Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Sea Line,” it said, adding that optimisation of customs procedures through the application of intelligent digital systems for barrier-free movement of goods was also agreed.
They were for raising the volume of bilateral trade in agricultural products, food and fertilisers as well as maintenance of an intensive dialogue aimed at removing veterinary, sanitary and phytosanitary restrictions and prohibitions.
“Development of cooperation in key energy sectors, including nuclear energy, oil refining and petrochemicals and expanded forms of cooperation and partnership in the field of energy infrastructure, technologies and equipment” too was part of the agreement, it said.
“Facilitation of mutual and international energy security, i.e. taking into account the prospects of global energy transition” was also agreed upon.
The two sides agreed to strengthen interaction in the fields of infrastructure development, transport engineering, automobile production and shipbuilding, space and other industrial sectors.
Facilitation of entry of Indian and Russian companies in each other’s markets by creating subsidiaries and industrial clusters, too, was agreed upon.
“Promotion of investments and joint projects across various sectors of digital economy, science and research, educational exchanges and internships for employees of high-tech companies” also found a mention in the joint statement.
They also agreed for facilitation of the creation of new joint (subsidiary) companies by providing them with favourable fiscal regimes.
It was also decided to study the possibility of opening branches of Indian medical institutions in Russia, recruit qualified medical personnel, and strengthen coordination in the area of medical and biological safety. Systematic cooperation in the development and supply of medicines and cutting-edge medical equipment will also be promoted.
Both parties supported the growth of humanitarian cooperation as well as the steady increase of exchanges in the domains of science and technology, education, healthcare, sports, culture, and other spheres.
Source:IE
