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– Strategic cooperation between India and Russia;
– Solving trade challenges and searching for new opportunities;
– Developing infrastructure and strengthening economic sustainability.
In his speech, Chairman of the FBA EAC Board noted that almost 20% of Russian companies do or would like to do business with Indian companies. India's share in Russia's total trade turnover in 2023 was the second highest – 9.1% (almost $65 billion, according to the Federal Customs Service). In 2021, trade with India accounted for only 1.7% of Russia's trade turnover. The growth was mainly due to a sharp increase in Russian supplies to India, primarily of oil and oil products. This year, there are all the prerequisites to maintain this figure. As part of further steps, it is very important to promote the diversification of Russian-Indian ties, which is of particular relevance for business structures. Russia and India have already established sustainable contacts in the oil and gas sector. Deepening cooperation in agriculture, high technology, mineral resources, pharmacy, medical technology, etc. is now a priority. Significant steps have already been taken in this direction. For example, in 2023, India accounted for about a third of fertilizer supplies by the Russian company PhosAgro, and the total volume of Russian fertilizer exports to India increased by 1.5 times.
As for multilateral cooperation, in the current circumstances, building ties using the potential of Eurasian economic integration may be a good solution for many Indian companies.
Among the main reasons preventing the development of full-scale cooperation, Alexander Murychev noted the difficulties in mutual settlements in national currencies. Thus, despite the above-mentioned interest in doing business with India, only 5% of Russian companies are interested in using rupees for foreign trade. The difficulties arising in practice are largely related to the specifics of regulation of international settlements in India. The volatility of the ruble is also not favorable for the implementation of medium-term projects.
‘Regulators should more actively promote the development of correspondent banking networks between Russia and India, as well as the BRICS countries’. The FBA EAC is actively developing such projects as BRICS PAY, BRICS BRIDGE, and BRICS Clear – initiatives that complement the existing infrastructure of financial markets. ‘The implementation of these projects will greatly contribute to the further development of trade and economic relations between Russia and India, as well as the BRICS countries,’ concluded Alexander Murychev.
16 December, 2024
15th Anniversary Indian-Russian Business Dialogue
On December 11, 2024, Alexander Murychev, Chairman of the FBA EAC Board, took part in the plenary session of the 15th Anniversary Indian-Russian Business Dialogue (the event was held in the Press Center of the Russia Today international news agency).
Photo from the archives of the Press Service of the Russian Union of Industrialists and Entrepreneurs
Alexander Murychev made a presentation on the topic “Strengthening the Strategic Partnership between India and Russia”, which addressed the issues:– Strategic cooperation between India and Russia;
– Solving trade challenges and searching for new opportunities;
– Developing infrastructure and strengthening economic sustainability.
In his speech, Chairman of the FBA EAC Board noted that almost 20% of Russian companies do or would like to do business with Indian companies. India's share in Russia's total trade turnover in 2023 was the second highest – 9.1% (almost $65 billion, according to the Federal Customs Service). In 2021, trade with India accounted for only 1.7% of Russia's trade turnover. The growth was mainly due to a sharp increase in Russian supplies to India, primarily of oil and oil products. This year, there are all the prerequisites to maintain this figure. As part of further steps, it is very important to promote the diversification of Russian-Indian ties, which is of particular relevance for business structures. Russia and India have already established sustainable contacts in the oil and gas sector. Deepening cooperation in agriculture, high technology, mineral resources, pharmacy, medical technology, etc. is now a priority. Significant steps have already been taken in this direction. For example, in 2023, India accounted for about a third of fertilizer supplies by the Russian company PhosAgro, and the total volume of Russian fertilizer exports to India increased by 1.5 times.
As for multilateral cooperation, in the current circumstances, building ties using the potential of Eurasian economic integration may be a good solution for many Indian companies.
Among the main reasons preventing the development of full-scale cooperation, Alexander Murychev noted the difficulties in mutual settlements in national currencies. Thus, despite the above-mentioned interest in doing business with India, only 5% of Russian companies are interested in using rupees for foreign trade. The difficulties arising in practice are largely related to the specifics of regulation of international settlements in India. The volatility of the ruble is also not favorable for the implementation of medium-term projects.
‘Regulators should more actively promote the development of correspondent banking networks between Russia and India, as well as the BRICS countries’. The FBA EAC is actively developing such projects as BRICS PAY, BRICS BRIDGE, and BRICS Clear – initiatives that complement the existing infrastructure of financial markets. ‘The implementation of these projects will greatly contribute to the further development of trade and economic relations between Russia and India, as well as the BRICS countries,’ concluded Alexander Murychev.
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