Russia–India

I am pleased to announce that despite the problems in the international economy, we are continuing to strengthen ties between our countries. I am also pleased to note that ties between our countries were not disrupted by the coronavirus pandemic. Between April 2022 and March 2023, our trade reached USD 50 billion. This exceeded the planned figure of USD 30 billion for 2025 — Faggan Singh Kulaste, Union Minister of State for Steel of the Republic of India.

Last year was probably one of the most dynamic in terms of the qualitative development of ties. As a trading partner with the Russian Federation, India went from 14th place to seventh. Our trade grew by... 150%. Against the background of these impressive successes, I would specifically highlight cooperation in the Far East and Arctic. That’s because the amount that Indian businesses have historically invested in projects in Sakhalin, Yakutia, and East Siberia is substantial, running into the many billions of dollars — Alexey Chekunkov, Minister of the Russian Federation for the Development of the Far East and the Arctic.

This growth would have been impossible without the active, successful, and effective work of both the Indian and Russian customs administrations. Customs-related cooperation between Russia and India is at a very high level. <...> Permanent links are in place, both at a bilateral level, and as part of BRICS, where we have a separate customs committee. We also work together under the World Customs Organization. There, we similarly coordinate our position with our Indian colleagues and regularly present a united front — Ruslan Davydov, Acting Head, Federal Customs Service of the Russian Federation.

I am concerned about the trade imbalance. In 2022–2023, Russia exported around USD 46 billion-worth of goods to India, while Indian exports to Russia barely rose above the USD 3 billion mark. We are working with our Russian colleagues to remove barriers hindering supplies of Indian goods, whatever they be related to – problems with logistics, access to markets, tariff barriers, and so on — Faggan Singh Kulaste, Union Minister of State for Steel of the Republic of India.

There is a trade imbalance between our countries, including in terms of currencies. India is a country with a robust – and I would even say in places – complex form of national currency regulation. Today, conditions are making things inconvenient for both parties – Russian and Indian – looking to trade using rupees and roubles. We are of course calling for the levelling of these conditions, and to perhaps take reciprocal steps on a pilot basis in relations with Russia to make it easier for Russian companies trading with India to convert their revenue into convenient currencies, and for Indian companies to invest in Russia — Alexey Chekunkov, Minister of the Russian Federation for the Development of the Far East and the Arctic.

There is a lack of understanding between our countries with regards regulation. This regulatory component requires clarification, and barriers need to be removed, as noted by the minister [for Steel of the Republic of India Faggan Singh Kulaste – ed.] in his speech. <...> We are planning – and are already fine-tuning – master classes on legal matters, because there is a major lack of understanding of the regulatory environment — Elena Borisenko, Deputy Chairman of the Management Board, Gazprombank.

I would like to invite interested Russian investors from a wide range of sectors – from electronics, manufacturing of parts, and light industry [to join the Make in India programme – ed.] — Faggan Singh Kulaste, Union Minister of State for Steel of the Republic of India.

Here at the St. Petersburg International Economic Forum, we have been able to sign yet another agreement with a new investor from what is a strong industry in India – the pharmaceutical industry. The investor decided to invest in Murmansk – our Arctic region. <...> Out of the several interesting areas of cooperation... I would like to highlight our partnership in the education sector. <...> In terms of commercial education, we can be competitive, offer value for money, and provide a higher standard of education than Western universities. <...> According to plans backed up by confirmed investments, it [trade along the Northern Sea Route – ed.] will quadruple in the next five years. It is therefore objectively incumbent upon Indian transport, logistics, and shipping companies to take part in this process [developing the Northern Sea Route – ed.] — Alexey Chekunkov, Minister of the Russian Federation for the Development of the Far East and the Arctic.

The country’s biggest – and globally noteworthy – logistics projects are already under way. I am referring in particular to Novatek’s liquefied natural gas transshipment projects. LNG will be transferred from ice class ships to regular ships in Petropavlovsk-Kamchatsky, and then delivered all over the world. The first shipments will begin in late 2023. This is just the start of major efforts to develop port logistics and related industries, such as ship repair and maintenance, and developing logistics centres. We will be glad to discuss these opportunities with our colleagues and partners — Vladimir Solodov, Governor of Kamchatka Territory.

The biggest pharmaceutical companies are located in India, and we have already submitted several letters of intent to the ministry of health regarding investment, localization, and forging new trade relationships in the pharmaceutical industry — Raj Prakash Vyas, President of Corporate Affairs, Cadila Pharmaceuticals Limited.

If possible, it would be nice to create a green corridor for trade between our countries. That’s because it is quite hard for Indian companies to export to Russia – the customs barriers are a hindrance. It would of course be good to reduce or remove them. This is a matter of great concern for us – difficulties surrounding customs formalities at the Russian border — Mohit Singla, Chairman, Trade Promotion Council of India.