Commercial Relations:Trade, investm

Commercial Relations:
Trade, investment and economic cooperation between India and Russia has
been growing steadily. In 2012, bilateral trade increased by 24.5% to reach US$# 11
billion out of which Indian exports amounted to US$ 3 billion while Russian exports were
valued at US$ 8 billion. In January-September 2013, bilateral trade amounted to US$
6.94 billion. Exports from India to Russia amounted to US$ 2.33 billion while imports
from Russia stood at US$ 4.61 billion. The two-way investment between the two
countries stands at approximately US$ 8 billion. In 2009, both sides set the target of US
$ 20 bn bilateral trade by 2015. Priority areas for expanding bilateral economic
cooperation are pharmaceuticals, IT, steel, diamonds, aviation, fertilizers, infrastructure,
heavy engineering and food products.
IRIGC-TEC is the main institutional mechanism to review economic cooperation.
It integrates seven working groups on trade and economic cooperation, modernization
and industrial cooperation, energy, investment projects, tourism and culture, science
and technology, and communications & IT. India - Russia Forum on Trade and
Investment co-chaired by the Commerce and Industry Minister of India and the Russian
Minister for Economic Development, and India - Russia CEOs’ Council are the two
primary mechanisms to promote direct bilateral business-to- business contacts between
India and Russia. Mechanisms such as India - Russia Business Council (partnership
between FICCI of India and CCI of Russia), India - Russia Trade, Investment and
Technology Promotion Council (partnership between CII of India and RUIE of Russia),
India – Russia Business Dialogue (partnership between CII of India and Russia’s
Business Council for Cooperation with India) and India - Russia Chamber of Commerce
(with focus on SMEs) supplement the efforts to build direct business - to - business ties.
In June 2013, the 4th India-Russia Business Dialogue was held within the framework of
the annual St. Petersburg International Economic Forum (SPIEF). India-Russia CEOs’
Council met in St. Petersburg in June 2013 and in Moscow in October 2013. Seventh
India-Russia Forum on Trade & Investment was held in St. Petersburg in September
2013.
Energy:
Russia is an important partner in peaceful uses of nuclear energy and it
recognizes India as a country with advanced nuclear technology with an impeccable
non-proliferation record. Construction of the Kudankulam Nuclear Power Plant (KKNPP)
Units 1 & 2 (VVER 1000 MW units) is an example of fruitful cooperation between India
and Russia. KKNPP Unit 1 has become operational in July 2013, while its Unit 2 is at an
advanced stage of construction.
India and Russia also have ongoing cooperation in the field of hydrocarbons and
power. ONGC Videsh Limited has substantive investments of over US$ 5 billion in two
major oil and gas projects – Sakhlin-1 and Imperial Energy Limited (Tomsk). Russian
companies are engaged in several power plant and oil and gas projects in India.
Outer Space:
India-Russia cooperation in the field of peaceful uses of outer space dates back
to about four decades. The two countries are currently engaged in cooperation on
GLONASS and other space applications.
Science & Technology:
The Working Group on Science and Technology functioning under IRIGC-TEC,
the Integrated Long Term Programme (ILTP) and the Basic Science Cooperation
Programme are the three main institutional mechanisms for bilateral Science and
Technology cooperation, while the Science Academies of the two countries promote
inter-academy exchanges. ILTP which supports collaborative research in basic and
applied sciences has resulted in establishment of 9 thematic centers in India and Russia
and implementation of about 500 projects. In 2010, ILTP was extended for another 10
years with a renewed mandate “innovation led technology programme”. India-Russia
Science and Technology Centre with a branch each in Delhi-NCR and Moscow was set
up in 2011-12 in order to promote transfer of technologies and their commercialization.
Two Programmes of Cooperation in the field of science and technology and in biotechnology
were signed in October 2013 and are in the process of implementation.
Cultural:
There is a strong tradition of Indian studies in Russia. Jawaharlal Nehru Cultural
Center at the Embassy of India, Moscow (JNCC) maintains close cooperation with
leading Russian institutions including the Institute of Philosophy, Moscow, Russian
State University for Humanities, Moscow, Institute of Oriental Studies, Moscow, Institute
of Asian and African Studies at the Moscow State University, School of International
Relations at the St. Petersburg University, Kazan Federal University, Kazan and Far
Eastern National University, Vladivostok. There is a Mahatma Gandhi Chair on Indian
Philosophy at the Institute of Philosophy, Moscow, while a Chair of Contemporary
Indian Studies is at the Russian State University for Humanities, Moscow. About 20
Russian Institutions, including leading universities and schools, regularly teach Hindi to
1500 Russian students. Apart from Hindi, languages such as Tamil, Marathi, Gujarati,
Bengali, Urdu, Sanskrit and Pali are taught in Russian Institutions. There is general
interest among Russian people in Indian dance, music, yoga and ayurveda. JNCC
conducts classes in yoga, dance, music and Hindi for approximately 500 students every
month. There are regular cultural initiatives to promote people-to-people contacts
between India and Russia. A Festival of Indian Culture covering 10 cities of Russia took
place in 2013.
Indian Community:
Indian Community in the Russian Federation is estimated at about 15,000. In
addition, about 1,500 Afghan nationals of Indian origin live in Russia. About 500 Indian
businessmen reside in Russia including about 200 businessmen who work in Moscow.
An estimated 300 registered Indian companies operate in Russia. Majority of Indian
businessmen/companies in Russia are involved in trading while some represent Indian
banks, pharmaceuticals, hydrocarbon and engineering companies. Tea, coffee,
tobacco, pharmaceuticals, rice, spices, leather footwear, granite, I.T. and garments are
amongst the products being imported by these companies from India. There are
approximately 4,500 Indian students enrolled in medical and technical institutions in the
Russian Federation. About 90% of them pursue medical studies in about 20
universities/institutions across Russia. Hindustani Samaj is the oldest Indian
organization in Russia functioning since 1957. Other Indian organizations in Moscow
include AMMA, DISHA, Indian Business Alliance, Overseas Bihar Association, Textile
Business Alliance, Bhartiya Sanskritik Samaj, and Ramakrishna Society Vedanta
Centre. Embassy of India School in Moscow is affiliated to Kendriya Vidyalaya
Sangathan in New Delhi with teachers deputed from India. The School has classes from
I to XII and has about 360 students.