Possible article:
India and Russia Boost Economic Ties with New Trade Agreement
India and Russia have signed a new trade agreement to deepen their economic cooperation and increase bilateral trade, which has been relatively low compared to their political and strategic relations. The deal, announced on September 13, 2021, during the visit of the Indian External Affairs Minister S. Jaishankar to Moscow, covers a wide range of sectors and activities, from energy and agriculture to pharmaceuticals and tourism. The agreement aims to remove trade barriers, enhance regulatory harmonization, and facilitate investments and technology transfers between the two countries.
The trade agreement has been in the works for several years, as India and Russia sought to strengthen their commercial links amid global geopolitical shifts and economic challenges. India, the world`s sixth-largest economy by nominal GDP, has been seeking to diversify its trade partners and reduce its heavy reliance on China, which accounts for about 15% of India`s total imports and exports. Russia, the world`s largest country by land area and a major player in energy and defense industries, has been seeking to boost its non-oil exports and attract more foreign investment to diversify its own economy, which has been hit by sanctions and low global oil prices.
The new trade agreement between India and Russia is expected to provide a major boost to their trade, which currently stands at around $10 billion, far below their potential and historic levels. The agreement covers over 500 trade items, including raw materials, machinery, electronics, chemicals, and textiles, and aims to increase bilateral trade to $30 billion by 2025. The agreement also provides for mutual recognition of standards and certifications, which will facilitate trade in priority sectors such as agriculture, fisheries, and food processing.
One of the key highlights of the trade agreement is the cooperation in the energy sector, where Russia has extensive expertise and resources, and India has growing demand and aspirations for clean energy. The agreement provides for joint projects in hydrocarbons, nuclear power, and renewable energy, as well as research and development, technology transfers, and training programs. The agreement also seeks to enhance cooperation in space and aviation, where Russia has a strong track record and India has ambitious plans for space exploration and commercial aviation.
Another area of potential growth in trade between India and Russia is the pharmaceutical sector, where both countries have a strong presence and complementarity. The agreement provides for the establishment of joint ventures and partnerships between Indian and Russian companies in the production, distribution, and marketing of drugs and vaccines, as well as the exchange of information and best practices in clinical trials, drug regulation, and pharmacovigilance.
The trade agreement is also expected to boost tourism between India and Russia, as it provides for the simplification of visa procedures and the promotion of cultural and educational exchanges. India and Russia have a long history of cultural and intellectual ties, and the agreement seeks to revive and expand those ties through various initiatives such as the establishment of joint cultural centers, the organization of festivals and exhibitions, and the exchange of scholars and students.
Overall, the new trade agreement between India and Russia is a significant step towards deepening their economic ties and realizing their mutual interests and potential. The agreement reflects the changing dynamics of the global economy and the shifting alliances and priorities of the two countries. It also underscores the importance of trade as a means of promoting peace, prosperity, and sustainable development in a rapidly changing world. As India and Russia seek to overcome the challenges and seize the opportunities of the post-pandemic world, the trade agreement provides a strong foundation for their partnership and growth.
