The Hindu Business Line : ‘Cut red tape to boost India-Russia trade’

Kolkata, Dec 20 Lack of awareness among the business community about opportunities in India and Russia and bureaucratic hassles in both countries are among the reasons for the low level of bilateral trade between India and Russia, according to Mr Vladimir V. Lazarev, Consul General of Russia in Kolkata.

Speaking at a seminar ‘Doing Business with Russia’ organised by Engineering Exports Promotion Council (EEPC) here today, Mr Lazarev said Indo-Russian bilateral trade was currently around $4 billion.

This, however, excludes the value of military and technical co-operation at the governmental level. Against this, the Russian-Chinese bilateral trade was of the order of $40 billion.

Mr Lazarev said private businesses in both the countries were not fully aware of the opportunities and facilities for business development in both the countries. The problem has been compounded by obstacles posed by the bureaucracy in both the countries.

“The bureaucracy, both in India and Russia, has its influence in all spheres of life. There are problems in the system on both sides,” he said.

He said the Indian Government’s reluctance to issue multiple-entry business visas to Russian businessmen had also come in the way of increased levels of bilateral trade.

He expressed the hope that Indo-Russian bilateral trade would go up to $10 billion within the next three years, especially with the proposed opening up of the new trade route between Mumbai and St. Petersburg via Bandar Abbas and Tehran.

The new trade route is expected to cut transport time by 10-12 days and transport costs by 15-20 per cent.

Speaking on the occasion, Mr R.P. Sehgal, Chairman of EEPC (Eastern Region), said the Federation of Indian Chambers of Commerce & Industry and the Russian Public Organisation of Small and Medium Size Enterprises had recently entered into a memorandum of understanding to explore the scope for co-operation in the small & medium enterprises segment.

“This co-operation can span a wide spectrum, such as training, exchange of experts, management, supply of machinery and equipment and even turnkey execution of projects,” he said.

Mr Sehgal said the Indian Government has declared the year 2008 as the ‘Year of Russia’ to “signal the encouraging prospect of a new vigour in India-Russia trade and investment relations”.