Russia ( Formerly the USSR), a strength with India in the Cold War, who has always supported India through thick and thin has come back from the low to forge the lost relationship with India. The Talks with Vladimir Putin to strengthen Bilateral Cooperation and trade and investment looks like India can be solid again in 2013.
The Ties severed by USSR’s loss in the Cold War are now being worked upon via Defense, Investment and trade agreements. Currently, Russia ranks low among India’s Trade partners i.e 36th in exports and 27th in imports. India’s share in Russia’s Total trade: 1.11%. The Major items of trade consist of: Pharma, Agro, IT and textile products in Exports and machinery, vehicles, fertilizers and Oil in Imports.
All looks hunky dory in the future, but the current investments is far below Potential i.e $20 Billion by 2015. Currently, it is only $7.8 Billion. The progress over the years also have been stagnant around 1%. The FDI from Russia over the past 12 years has been $0.47 Billion which is 0.25% share. Too less for a Pole Country.
Although, sunrise is seen in Defense Ties. Russia famous for their nuclear and military mower have promised $4 Bn amount of deals to be done. It includes contract for delivery of 71 helicopters and delivery of 42 technological kits for an aircraft licensed for production. India weaponising itself sends a strong message to neighbor countries who pinch India often.
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PS: Facts taken from Economic Times.