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    Russian Export Centre opens chapter in India

    Synopsis

    "India is one of the largest world’s economies with a great potential for further growth," said Andrey Slepnev.

    ET Bureau
    In an exclusive interview with ET's Dipanjan Roy Chaudhury, General Director of Russian Export Centre Andrey Slepnev elaborates on the plans and prospects.

    How do you see the cooperation between Russia and India and what results do you expect from the coming business-summit?
    India is one of the largest world’s economies with a great potential for further growth. Last year, India ranked sixth in GDP, and third in the purchasing power parity in the world. Besides, we must not forget that our countries and peoples have long-lasting friendly relations. Last year 2017, was a milestone for the Russia-India cooperation: we celebrated the 70thanniversary of diplomatic relations, India has become a full member of Shanghai Cooperation Organization, negotiations began for the creation of a free trade area with the Eurasian Economic Union, which would certainly contribute to strengthening our foreign trade relations. Therefore, India is a key trade partner and priority region for Russia, which the Russian non-mineral export development is focused on. Russian and Indian partners hold regular meetings and negotiations at the summit level to discuss key areas of cooperation between the two countries as well as urgent international and regional challenges. The present summit is the third meeting of our leaders this year, which confirms mutual commitments to develop the cooperation.

    The task of Russian Export Center Group is to improve the environment and provide support for export activities of the Russian companies, to assist in creating the new channels to advance towards foreign markets and the new mechanisms for interaction with our foreign trade partners – primarily, in such key and promising markets as India. In this connection, we work both at the bilateral level and multilaterally – in particular, on the basis of BRICS.

    We are holding meaningful negotiations with major Indian companies and preparing to announce our cooperation in several promising areas as well as to sign a number of bilateral documents at the forthcoming summit. Along with interstate events involving heads of both countries, Russian Export Centerwill conduct a business mission of the Russian export-orientedcompanies.

    How do you assess the current dynamics of the Russia-India trade?
    In 2018, the positive dynamics continued, including in sales volumes. For the first six months of 2018, the volume of mutual trade reached almost USD 5.5 bln, which constitutes a 30%growth as compared to the same period in 2017. In this regard,the growth resulted mostly from an increase of the Russian export: thus for the last year, export grew by 43%, and the import increased by 6.43% (according to the Federal Customs Service of Russia)

    For the first two quarters of 2018, Russian Export Center Groupsupported 126 Russian export-oriented companies, supported export of Russian products of chemical and light industry, civilmachine building, agro-industrial complex, and consumer goods.

    Taking into account the positive dynamics in development of the Russia-India trade and economic cooperation, expanding interest of the Russian companies to enter the Indian market, as well as competitive and high-technology solutions of the Russian business in such areas as IT, transport, security systems, power production, and others, I am confident that the Russian companies are ready to act as reliable and experienced partners in the implementation of projects in India. On its part, Russian Export Center is ready to support them in all areas.

    Are there any plans to open a representative office of Russian Export Center in India?
    The representative office of Russian Export Center in India will be opened within the framework of the visit of the President ofRussia. This will strengthen practical interaction between businesses of our countries. In spring 2018, Russian Export Center obtained from Indian authorities the permit for registration of own representative office and currently is finalizing all necessary administrative procedures.

    Many Russian companies strive to enter such a perspective and a rapidly evolving market, and Russian Export Center is ready to assist in it as much as possible. We plan to create an effective area for communication between the Russian and Indian companies with the assistance of the Russian Export Centerrepresentative who can give overall consultation immediately, on place, regarding the whole product line of the Group, including issues concerning financing the transaction using products of Export Insurance Agency of Russia and Export-Import Bank of Russia.

    In what areas does Russia plan to increase volumes of export to India and to develop cooperation with the Indian companies? Does the summit program include the signing of any agreements between the Russian and Indian companies?
    The Russia-India cooperation is actively developing in many areas, including power production, transport, high technology industry. New upcoming sectors, such as mining industry and geological exploration, agricultural sector, chemical industry, water resources management, production and processing of metals and precious stones, timber production and timber processing, environmental projects are worth mentioning.

    The summit program also includes the signing of Memoranda ofUnderstanding between MSP Corporation, JSC, and National Small Industries Corporation of India (NSIC), between
    SG-Trans, JSC, and Jindal, between Russian Export Center and Confederation of Indian Industry as well as between Russian Export Center and Srei Infrastructure & Equipment Financing Institution.

    Does Russia plan to launch new export directions?
    In the course of the summit, it is planned to discuss topical issues of bilateral cooperation and implementation of joint projects in the area of aircraft engineering, shipbuilding, railway engineering, radio-electronic, chemical, and aluminum industries, waste treatment, and diamond processing.

    Russia has wide experience in the implementation of large-scale national infrastructure projects in the field of IT, transport, security, power production, and other critical fields. The Russian companies are ready to act as reliable and experiencedpartners in the implementation of similar projects in India, including with involvement of the third-party financing or under government programs for modernization of infrastructure. Potential directions include participation in programs for purification of the Ganges waters, modernization of railroads infrastructure in India, implementation of the program for development of smart cities.

    Upcoming activities include meeting with Russia’s business operating in India. Russian Export Center is in a continuous dialog with domestic exporting companies and receivesfeedback from them on a regular basis. In perspective, with the participation of the Russian Export Center representative office in India and with the active involvement of Russia’s businessmen who feel quite confident at the Indian market it is planned to establish an agency network for the promotion of new exporters. Besides, an important area for us is theaccumulation of assessment of those Russia’s companies, which have already entered the export market and are very familiar with the specificity, including country and regional. It is important they could share the said assessment with newcomersboth on conditions of collaboration within the framework of projects and as guides to the markets of foreign states. This is especially of great current interest for small and medium-sized enterprises. Thus, small and medium-sized enterprises from the Russian regions will have an opportunity to feel confident “under the wing” of experienced colleagues participating in the complex production chains and exploring new markets.

    What challenges in India and Russia bilateral trade?
    Prospects of the Russian and Indian trade are enormous. All problems and challenges our countries face in the issues of bilateral relations are solved at the negotiating table through meaningful and friendly dialog. Any external pressure and elements of non-market competition from any third countries capable to darken the Russia-India relations do not matter at all. Russia and India are sovereign states selecting trade partners independently based on friendship and mutual benefit.


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