India – Russian MoU in Bilateral Trade

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The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its approval for signing the Memorandum of Understanding (MoU) between India and the Russian Federation on Expansion of Bilateral Trade and Economic Cooperation.

The MoU would expand more Bilateral Trade and Economic Cooperation between India and Russian Federation.

Background:

Making economic partnership as strong a pillar as other pillars of the strategic partnership between India and Russia is a key priority for the two governments. To promote smoother and greater movement of businessmen, the two countries signed a protocol on 24 December 2015 to simplify visa procedures for businessmen.

In December 2014, the leaders of the two countries set a target of US$30 billion bilateral trade by 2025. Bilateral trade during in 2015 amounted to US$ 7.83 billion (decline of 17.74% over 2015), with Indian export amounting to US$ 2.26 billion and imports from Russia amounting to US$ 5.57%.

Major items of export from India include pharmaceuticals, tea, coffee and tobacco, nuclear reactors &boilers, machinery and mechanical appliances, organic chemicals, and electrical machinery and equipment.

Major items of import from Russia include pearls, precious and semi-precious stones & metals, nuclear power equipment, electrical machinery and equipment, mineral oil & products, iron &steels, and optical, precision and surgical equipment.

Indian investment in Russia are estimated to be about US$ 8 billion which include Imperial Energy Tomsk; Sakhalin I; Volzhsky Abrasive Works Volgograd; and Commercial Indo bank. Russian investments in India total about US$ 3 billion, including Kamaz Vectra in Hosur; Shyam Sistema Telecom Ltd, Sberbank and VTB.

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