Global Courant 2023-05-01 02:00:00
NEW DELHI — India and Russia are exploring ways to deepen trade ties, with Moscow viewing the South Asian country as an alternative market for its products in the face of crippling Western sanctions, while New Delhi hopes to ease a growing trade deficit.
India’s imports from Russia increased fivefold between April 2022 and February 2023 to USD 41.56 billion ($55.6 billion) compared to the previous corresponding period, mainly due to oil imports, while exports to the country amounted to USD 3 billion.
Russia, unable to sell to the West due to sanctions over the war in Ukraine, is selling oil at discounted rates to India and China.
To boost trade, a 50-strong Indian business delegation from the agricultural and food processing sector went on a four-day visit to Russia from April 24 to look at opportunities there.
“We are looking at animal feeds, soybeans and ready meals,” said Dr Ajay Sahai, director general and chief executive officer of the Federation of Indian Export Organisations. The delegation spent four days in Moscow and Saint Petersburg.
Dr. Sahai noted that the “massive trade deficit is a concern, but it is also an opportunity to exponentially boost exports.” “We need to diversify exports into cars and auto parts, electronics, medical devices, solar cells, textiles, food and agriculture, etc,” he said.
Despite closer ties with the United States and the West, India continues to maintain close ties with Russia.
The two countries share close defense ties, with 60 percent of India’s weaponry being of Russian origin, giving India a balancing act during the war in Ukraine.
At the United Nations, much to the West’s frustration, India has abstained from voting against Russia in many resolutions, but has urged Moscow to push for a peaceful resolution of disagreements and an end to the war in Ukraine.
Still, foreign policy analysts said, challenges remain to boost trade amid connectivity issues between the two countries.
The two sides are in talks to open a maritime corridor between the southern port city of Chennai and Vladivostok, a Pacific port city in Russia.
The route, which has been in development since 2019, will cut cargo transit time by half to 20 days compared to the current route that goes through Europe to Russia’s far east.
India has also looked into sending goods through the International North-South Transport Corridor, a 7,200km network of railways, highways and sea routes connecting Russia and Iran to India.
