Modi, Putin to release joint vision document during PM's Russia visit in June
NEW DELHI: Prime Minister Narendra Modi is expected to release an ambitious joint vision document with President Vladimir Putin, during his visit to St. Petersburg on June 1-2, to tap unrealised potential in India-Russia economic partnership over the next few decades.
Officials said the areas under focus include Indian pharmaceutical plants in Russia, long-term leasing of agricultural land in Russia's Far East, export of automobile components from India and entry of new Indian textile players in Russia.
The list also includes heavy engineering under the Make in India initiative, investments by leading Indian IT firms in Russian tech parks, entering infrastructure market in Russia, collaboration in mining and metallurgy sector, and joint collaboration in the Arctic sector.
India and Russia have in the past few years decided to expand bilateral ties beyond defence. In 2014, Modi and President Putin set a target of $30-billion bilateral trade by 2025. Bilateral trade in 2015 amounted to just $7.83 billion, with Indian exports amounting to $2.26 billion while imports from Russia were worth $5.57 billion. Pharmaceuticals are among the major export items from India to Russia.
India's share is a mere 2% of the total Russian imports, though, and is mainly in generics. This sector has been affected in the past few years due to Russia's policy to promote indigenisation and import substitution.
The fall in pharmaceutical exports from India to Russia has significantly affected India's total exports to Russia, according to one of the persons cited earlier. Indian pharmaceutical companies are looking at the possibility of setting up plants in Russia with some local production to avoid a further fall in exports, people familiar with the matter said.
Agriculture and food processing sector is one of the emerging areas of cooperation. There is considerable demand for import of agricultural products, mainly fresh vegetables and fruits from India. One of the reasons for the inability of Indian exporters to cater to this demand is the logistics.
"The solution to this problem could be direct long-term contracts between major supermarket chains in Russia and major exporters from India who can deliver on time, quality of packaging and veterinary/phytosanitary standards," an official said.
According to the official, there is also an emerging opportunity in terms of long-term lease of agriculture land in Russia's Far East region. China and South Korea are looking at such opportunities in that region, which is being offered to interested partners on long-term lease, he said.
Russia has announced visa-free travel for Indians in its Far East to counter-balance growing Chinese presence there. Automobile components are one of the main strengths of Indian industry.
But Indian automobile components account for only a small percentage of total imports of automobile components into Russia.
Officials said the areas under focus include Indian pharmaceutical plants in Russia, long-term leasing of agricultural land in Russia's Far East, export of automobile components from India and entry of new Indian textile players in Russia.
The list also includes heavy engineering under the Make in India initiative, investments by leading Indian IT firms in Russian tech parks, entering infrastructure market in Russia, collaboration in mining and metallurgy sector, and joint collaboration in the Arctic sector.
India and Russia have in the past few years decided to expand bilateral ties beyond defence. In 2014, Modi and President Putin set a target of $30-billion bilateral trade by 2025. Bilateral trade in 2015 amounted to just $7.83 billion, with Indian exports amounting to $2.26 billion while imports from Russia were worth $5.57 billion. Pharmaceuticals are among the major export items from India to Russia.
India's share is a mere 2% of the total Russian imports, though, and is mainly in generics. This sector has been affected in the past few years due to Russia's policy to promote indigenisation and import substitution.
The fall in pharmaceutical exports from India to Russia has significantly affected India's total exports to Russia, according to one of the persons cited earlier. Indian pharmaceutical companies are looking at the possibility of setting up plants in Russia with some local production to avoid a further fall in exports, people familiar with the matter said.
Agriculture and food processing sector is one of the emerging areas of cooperation. There is considerable demand for import of agricultural products, mainly fresh vegetables and fruits from India. One of the reasons for the inability of Indian exporters to cater to this demand is the logistics.
"The solution to this problem could be direct long-term contracts between major supermarket chains in Russia and major exporters from India who can deliver on time, quality of packaging and veterinary/phytosanitary standards," an official said.
According to the official, there is also an emerging opportunity in terms of long-term lease of agriculture land in Russia's Far East region. China and South Korea are looking at such opportunities in that region, which is being offered to interested partners on long-term lease, he said.
Russia has announced visa-free travel for Indians in its Far East to counter-balance growing Chinese presence there. Automobile components are one of the main strengths of Indian industry.
But Indian automobile components account for only a small percentage of total imports of automobile components into Russia.