India Russia Trade Up 19 percent, Tariff Elimination on the Way
By Dezan Shira & Associates
Following meetings with Indian trade officials in the capital Delhi, Russian Deputy Economic Development Minister Alexy Gruzdev stated that the two countries have approved the creation of a mechanism that will eliminate existing limits and barriers in bilateral trade. Gruzdev was summing up the conclusions of the meeting of the co-chairs of the Indo-Russian intergovernmental commission on trade, economic, scientific, technological and cultural cooperation, which was held in New Delhi on Saturday.
Gruzdev stated, “All in all, one of the priorities of our further dialogue on the intergovernmental level should become the enlargement of trade and economic co-operation. The creation of a mechanism for the identification, analysis and elimination of barriers in our bilateral trade has been approved”.
Gruzdev also said that the bilateral trade between Russia and India amounted to US $7.3 billion in the first 10 months of the year, which is an increase of 19 percent compared to the same period in 2016.
This trend is likely to continue with even more spectacular results. India has applied for a Free Trade Agreement with the Russia-backed Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.
“The India-Russia Trade Corridor is one to watch”, said Chris Devonshire-Ellis of Dezan Shira & Associates. Further, Chris Devonshire-Ellis said, “The EAEU has a significant and growing trade volume, while the Indian market has also been growing at significant rates. There is plenty of room for growth in this corridor, and infrastructure is already being put in place to develop this further.”
Indian companies have also been investing money in cities such as Vladivostok, which is the home of the Eurasian Diamond Exchange , while the two nations have established a joint investment fund and are working together on bilateral projects in both aviation, pharmaceuticals and agriculture.
Dezan Shira & Associates provides foreign businesses with strategic, legal, tax, and operational advisory services to SMEs and MNCs investing throughout India, and has offices in Delhi and Mumbai, as well as St. Petersburg and Moscow. The firm assists Indian investors in Russia, and Russian investors in India. Please contact our India offices at firstname.lastname@example.org, our Russia Desk at email@example.com, or visit our practice at www.dezshira.com.