Policy Brief 43 / 2022
In the current geopolitical situation, Russia is readjusting its long-term asymmetrical gravitation toward the West. At the same time, India continues to steer its independent foreign policy, creating unique opportunities for building qualitatively new cooperation in investment, trade, and the economy between Moscow and New Delhi. For many years, Russian-Indian trade failed to match the in-depth specially privileged strategic partnership and political ties between the two nations1. Today, trade is growing at an outstripping pace as Russia rapidly increases its deliveries of Russian energy sources, fertilizers, iron, steel, timber products, plant and animal oils to India.
Given the increase in Russian exports, Moscow and New Delhi now face the task of reducing India’s growing trade deficit, by searching for new trade and by rebalancing the economy in a way that aligns with both countries’ interests. India faces a growing industrial sector, increasing purchasing power of its middle class, and greater digitization trends that have recently been picking up pace both in India and in Russia. This creates urgent objectives in bilateral economic cooperation, demand in new investment ties, and expands trade beyond traditional commodities. India’s economy has also been significantly stimulated by Narendra Modi’s key governmental projects such as “Aatmanirbhar Bharat” (or “Self-Sufficient India”), “Make in India”, “Skill India”, “Startup India”, just to name a few. These and many other reforms implemented by Narendra Modi are based on digital transformation.
Russian entrepreneurs are greatly interested in India’s market trends and are quickly accumulating knowledge of today’s India’s changing needs and opportunities. Likewise, similar trends and a thirst for knowledge of today’s Russia are being gradually manifested by Indian business circles.
Consequently, now is the time to consider in detail Russia-India cooperation in investment and trade, analyze the options of diversifying bilateral economic ties in the near future, and outline the obstacles currently obstructing their development. Eliminating those obstacles should be the focus of all the interested parties.
Policy Brief 43 / 2022
In the current geopolitical situation, Russia is readjusting its long-term asymmetrical gravitation toward the West. At the same time, India continues to steer its independent foreign policy, creating unique opportunities for building qualitatively new cooperation in investment, trade, and the economy between Moscow and New Delhi. For many years, Russian-Indian trade failed to match the in-depth specially privileged strategic partnership and political ties between the two nations1. Today, trade is growing at an outstripping pace as Russia rapidly increases its deliveries of Russian energy sources, fertilizers, iron, steel, timber products, plant and animal oils to India.
Given the increase in Russian exports, Moscow and New Delhi now face the task of reducing India’s growing trade deficit, by searching for new trade and by rebalancing the economy in a way that aligns with both countries’ interests. India faces a growing industrial sector, increasing purchasing power of its middle class, and greater digitization trends that have recently been picking up pace both in India and in Russia. This creates urgent objectives in bilateral economic cooperation, demand in new investment ties, and expands trade beyond traditional commodities. India’s economy has also been significantly stimulated by Narendra Modi’s key governmental projects such as “Aatmanirbhar Bharat” (or “Self-Sufficient India”), “Make in India”, “Skill India”, “Startup India”, just to name a few. These and many other reforms implemented by Narendra Modi are based on digital transformation.
Russian entrepreneurs are greatly interested in India’s market trends and are quickly accumulating knowledge of today’s India’s changing needs and opportunities. Likewise, similar trends and a thirst for knowledge of today’s Russia are being gradually manifested by Indian business circles.
Consequently, now is the time to consider in detail Russia-India cooperation in investment and trade, analyze the options of diversifying bilateral economic ties in the near future, and outline the obstacles currently obstructing their development. Eliminating those obstacles should be the focus of all the interested parties.
Developing Russia-India Economic Ties Under New Circumstances, 6.4 Mb.
