Shorter shipment route can foster India-Russia trade

New Delhi, Jan 15 (UNI) Optimising the India-Russia shipment route, development of investment cooperation, quick access to information on trade opportunities and the expansion of inter-banking cooperation are the four issues that need attention to boost Indo-Russia trade, Russia's Ambassador to India Vyacheslav Ivanovich Trubnikov, said here today.

Addressing a session on India-Russia Trade Relations organised by CII here, Mr Trubnikov said the lack of an efficient shipment route pushes up freight costs.

India-Russia trade, at 2.76 billion dollars in 2005-06, grew by 41 per cent over the previous year. Mr Trubnikov said it should grow further given a series of high-level initiatives taken by both sides in 2006 and 2007.

''The visit of President Putin to India later this month, the Russian-Indian Forum on Trade and Investment in February and another business meeting in June are some of the forthcoming events to foster bilateral trade,'' he said.

A study released on the occasion, 'Deepening India-Russia Trade Relations', suggested that the North-South Corridor provides the shortest link between India and Russia through Iran and the Caspian Sea. Once commissioned, the North-South corridor can help reduce costs by nearly one-third.

Better and more up-to-date information can help businessmen of both countries find qualified partners, the Ambassador said.

''The launch of another trade portal to facilitate online interaction between businessmen will be the next step,'' he added.

''Businessmen should be able to use debt funds for bilateral investment, and I hope the Russian-India Investment Forum assists in boosting investment,'' the Russian Ambassador said.

Both countries should cooperate in research and development and the commercialisation of technology. The network of Russian banks is very underdeveloped in India, and even though there are some Indian banks in Russia, much still needs to be done.

Sun Group Vice-Chairman S V Khemka said Indian and Russian companies can cooperate on ventures in third countries.

''This is easier now than before because Russian business is now in its young adulthood. Indian businesses need to look ahead in light of the changes shaped by President Putin, and recognise that today's Russia is a stable market economy. Financial services, the real estate sector, infrastructure, the mining sector are other areas that India can look to investing in Russia,'' said Mr Khemkha.

Another sector India is already present in a big way in Russia is the pharmaceutical industry. Although Russia is India's second biggest market for pharmaceutical products, India's position has actually fallen to fifth rank, behind France, Germany, Slovenia and Hungary, Mr Firoz KH Khan of Ranbaxy Laboratories Ltd pointed out.

UNI