Indian PM seeks enhanced trade ties with Russia
Wednesday, 14 November 2007
MOSCOW, Nov 13 (PTI): Prime Minister Manmohan Singh yesterday sought a "big leap forward" in Indo-Russian trade and investment including in the energy sector where there are bilateral synergies "waiting to be exploited."
Addressing the leaders of Russian and Indian business communities here, Singh pointed out that the trade relations between India and Russia have lagged "far behind" the "excellent" political understanding between the two friendly nations.
"Trade and investment relations between India and Russia have lagged far behind our excellent political understanding and our joint commitment to strategic partnership," Singh said.
"India's energy requirements are going to increase manifold. India has the technological and financial capabilities to participate in both upstream and downstream areas in the hydrocarbon sector.
There are "bilateral synergies" in this important sector which is "waiting to be exploited," he said.
He pointed that in post-1991 period (Soviet collapse and liberalisation of Indian economy) the content and format of economic relations between India and Russia have been redefined and the rapid growth of markets and economic reforms have created trillion dollar economies in both countries.
He said the governments could only play the role of facilitators and there was "no substitute" for a vigorous two-way engagement between the business communities.
"If Russia's trade with China is USD 35 billion and with the European Union it is more than 200 billion euros, I see no reason why India-Russia trade should languish at the level of USD 4 billion," he stated.
He reminded that during his last Moscow visit the two governments had decided to set up Indo-Russian Joint Study Group (JSG) to suggest ways to enhance bilateral trade volume to USD 10 billion by 2010.
India has approved the report of JSG and it has been decided to set up a Joint Task Force to implement the recommendations, the prime minister announced.
He identified energy, banking, IT, telecommunications, hi-tech sectors, power, pharmaceuticals and textiles as the promising areas where there were "immense" possibilities for joint investments and collaboration in third country markets.
He noted that Russia is the second largest producer of rough diamonds in the world, while India is the largest processor of rough diamonds representing 80 per cent of the world's mined production.
Addressing top business leaders at the end of his talks here with President Vladimir Putin and Prime Minister Viktor Zubkov, Singh stressed that the two governments wish to see bilateral economic engagement as a major pillar of Indo-Russian strategic partnership.
Meanwhile, Finance Minister P Chidambaram yesterday refused to sing the requiem for industrial growth, which was poor in September, and said that industry and services sectors would actually grow close to 10 per cent this fiscal.
"I don't think we can draw conclusion from one month's figure, but overall services and industry are likely to grow between 9-10 per cent this fiscal... perhaps close to 10 per cent," he said at the economic editors conference here.
This would mean that 83 per cent of the Indian economy will grow between 9-10 per cent, he said, commenting on the index of industrial production (IIP) figures released earlier in the day.
The IIP for September decelerated to 6.4 per cent from a high of 12 per cent recorded in the year-ago period.
Chidambaram said during April-September there was only a slight deceleration in IIP growth. The index grew by 9.2 per cent in the six month period compared to 11.1 per cent in the corresponding period last year.
Addressing the leaders of Russian and Indian business communities here, Singh pointed out that the trade relations between India and Russia have lagged "far behind" the "excellent" political understanding between the two friendly nations.
"Trade and investment relations between India and Russia have lagged far behind our excellent political understanding and our joint commitment to strategic partnership," Singh said.
"India's energy requirements are going to increase manifold. India has the technological and financial capabilities to participate in both upstream and downstream areas in the hydrocarbon sector.
There are "bilateral synergies" in this important sector which is "waiting to be exploited," he said.
He pointed that in post-1991 period (Soviet collapse and liberalisation of Indian economy) the content and format of economic relations between India and Russia have been redefined and the rapid growth of markets and economic reforms have created trillion dollar economies in both countries.
He said the governments could only play the role of facilitators and there was "no substitute" for a vigorous two-way engagement between the business communities.
"If Russia's trade with China is USD 35 billion and with the European Union it is more than 200 billion euros, I see no reason why India-Russia trade should languish at the level of USD 4 billion," he stated.
He reminded that during his last Moscow visit the two governments had decided to set up Indo-Russian Joint Study Group (JSG) to suggest ways to enhance bilateral trade volume to USD 10 billion by 2010.
India has approved the report of JSG and it has been decided to set up a Joint Task Force to implement the recommendations, the prime minister announced.
He identified energy, banking, IT, telecommunications, hi-tech sectors, power, pharmaceuticals and textiles as the promising areas where there were "immense" possibilities for joint investments and collaboration in third country markets.
He noted that Russia is the second largest producer of rough diamonds in the world, while India is the largest processor of rough diamonds representing 80 per cent of the world's mined production.
Addressing top business leaders at the end of his talks here with President Vladimir Putin and Prime Minister Viktor Zubkov, Singh stressed that the two governments wish to see bilateral economic engagement as a major pillar of Indo-Russian strategic partnership.
Meanwhile, Finance Minister P Chidambaram yesterday refused to sing the requiem for industrial growth, which was poor in September, and said that industry and services sectors would actually grow close to 10 per cent this fiscal.
"I don't think we can draw conclusion from one month's figure, but overall services and industry are likely to grow between 9-10 per cent this fiscal... perhaps close to 10 per cent," he said at the economic editors conference here.
This would mean that 83 per cent of the Indian economy will grow between 9-10 per cent, he said, commenting on the index of industrial production (IIP) figures released earlier in the day.
The IIP for September decelerated to 6.4 per cent from a high of 12 per cent recorded in the year-ago period.
Chidambaram said during April-September there was only a slight deceleration in IIP growth. The index grew by 9.2 per cent in the six month period compared to 11.1 per cent in the corresponding period last year.