India, Russia can check global financial crisis: Assocham

By IANS

New Delhi : Leaders of Indian industry have suggested that India and Russia, along with Brazil and China, can jointly address the slowdown of the global economy.


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Ahead of a three-day visit to India by Russian Prime Minister Victor A. Zubkov starting Monday, the Associated Chambers of Indian Industry of India (Assocham) said both Russia and India should put significant stress on greater trade among developing countries.

The fast emerging economies of Brazil, Russia, India and China (BRIC) are heavily dependent on exports. The total trade of the BRIC nations amounts to more than $3.4 trillion and is rising at an average rate of 20 percent, the chamber said.

“While India ranks lowest among the four BRIC nations in terms of global slowdown risk, Brazil and China may get severely hit with impending deceleration in developed economies as 35 percent and 30 percent of their respective external trade are directed towards the US and EU (European Union),” Assocham president Venugopal N. Dhoot said in a statement.

Currently, trade between India and Russia is $4 billion, which rose by 9.6 percent in 2006-07 as compared to 41 percent growth in 2005-06.

The prime commodities exported by India to Russia are drugs and pharmaceuticals, readymade garments, textiles, tea, coffee, tobacco, machines and instruments, and electronic goods.

India mainly imports iron and steel, non-ferrous metals, fertiliser and wheat from Russia.

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