New Delhi, Feb. 16 India and Russia have agreed to set up a Joint Working Group (JWG) to finalise a general trade agreement shortly, aiming to more than triple the bilateral trade to $20 billion by 2015.
Official sources told Business Line that during the meeting that the Union Commerce and Industry Minister, Mr Anand Sharma, had with the Russian Deputy Prime Minister, Mr Sergei Sobyanin, and the Russian Minister of Industry and Trade, Mr Victor Khrihtenko on Tuesday, both the sides agreed to establish a JWG to work out the general trade agreement so that it can be signed during the visit of the Russian Prime Minister, Mr Vladimir Putin, to India in March.
Two years ago, India and Russia had also decided to explore the feasibility of inking a Comprehensive Economic Cooperation Agreement (CECA), following such a recommendation by a Joint Study Group. Both sides had also decided to set up a Joint Task Force in that regard. But the proposed trade agreement will be general in nature and is not connected to the CECA, the sources said.
Both sides also discussed ways to deepen ties in sectors such as pharmaceuticals, space, metallurgy, aviation and fertilisers, hoping that the enhanced economic engagements in these areas would further boost bilateral co-operation, a statement by the Indian Commerce Ministry said. India-Russia trade in 2008-09 was $5.42 billion, up 58.7 per cent from $3.41 billion in the previous year. While Indian exports to Russia were only a little over $1 billion in 2008-09, Russian exports to India were about $4.4 billion. The bilateral trade during April-December 2009 was around $2.19 billion.
The major items of export by India are drugs, pharmaceuticals, fine chemicals, tea, transport equipments, machinery and instruments, coffee, cotton yarn fabrics, made-ups and manufactures of metals.
The major items of import are petroleum, crude and products, fertilisers (manufactured), iron and steel, non-ferrous metals, silver, transport equipments, coal, coke, briquettes, as well as synthetic and reclaimed rubber newsprint.
The cumulative Foreign Direct Investment (FDI) inflows from Russia during 1991-92 (August-March) to 2009-10 (April-December) were $455.61 million. The major sectors which attracted FDI inflows from Russia include telecommunications, services sector, automobile industry, food processing, hotel and tourism.
Source : Business Line