By NNN-PTI
Moscow, Russia : India and Russia, old partners in political and defence arena, saw business affairs taking the front seat in 2007 as corporate leaders showed interest in opportunities offered by their trillion-dollar economies.
Earlier last year, the two governments had decided to set up an Indo-Russian Joint Study Group to suggest ways to enhance bilateral trade volume to USD 10 billion by 2010. During his Moscow visit in November, Prime Minister Manmohan Singh announced the approval of JSG report and decision to set up a Joint Task Force to implement its recommendations.
“If Russia’s trade with China is USD 35 billion and with the European Union more than 200 billion euros. I see no reason why India-Russia trade should languish at the level of USD 4 billion,” Singh stated.
He stressed that governments could only play the role of facilitators and there was ‘no substitute’ for a vigorous two-way engagement between the business communities.
In line with his intent, the two countries expanded ties in a number of economic areas. While Indian bulk commodities are unable to compete in Russia due to high transportation costs, trade in value added items found many takers.
In a major breakthrough, Russia allowed Indian traders to pick rough diamonds directly from the country. Russia is the second-largest producer of rough diamonds in the world, while India is the largest processor. According to Indian Embassy’s economic wing, every month several million dollars of rough diamonds go to India for cutting and polishing.