The Hindu Business Line : ‘Red tape stifles Russia-India trade’

Kolkata, Jan 26 Stressing on the need to widen India-Russia trade ties, as 2008 has been labelled the “Russia year in India’, Mr Vyacheslav I. Trubnikov, Ambassador of the Russian Federation to India, said here on Friday that red tape on both sides was a major undermining factor for greater business ties .

Office in India

Pointing out that the focus has to be on the new sphere of financial and banking services, he said the first big step would be the opening of an office of the Russian Fed Bank in New Delhi, most likely in February 2008.

There is also a plan to launch a Russia-India Chamber of Commerce soon to strengthen business ties between the private businesses of both the countries. Many Russian trade delegations, both private and public, are also expected to visit India this year.

Focus areas

Speaking at an interactive session organised by the Bharat Chamber of Commerce, the Ambassaddor said the renewed focus should be on collaborative ventures between the private sectors of the two countries in areas like Information Technology, hi-tech and energy.

Mr Trubnikov said following the visit of President Vladimir Putin’s visit to India last year, there has been a positive turn to economic relationship between the two nations. “Now that many of the internal problems in the Russian Federation have settled down, we need to pursue trade goals more vigorously.”

Asked if an India, Russia, China strategic alliance was feasible to maintain the balance in the Asian region, Mr Trubnikov said each country must have a clear aim of its own (whether geo-political or economic) to carve out such an alliance for multiple benefits to accrue to the region as a whole.

Conceding that at the moment, no one was projecting the trilateral group balance factor against NATO nations or Europe, as such, he said it would be particularly interesting in the energy sector, as both India and China have major power requirements, and the Russian Federation could emerge as a major supplier in this field.

Closer ties

According to him, closer economic ties between the three nations should receive the highest priority. He, however, clarified that there was a need to create a climate of total trust between India and China first. Border problems, he felt, were always quite difficult to solve.

tea& Potato

On prospects of Indian tea finding its feet again in the Russian market in a big way, Mr Trubnikov, said internal problems have actually led to the flavour of Indian tea (like Darjeeling) being forgotten among the Russians.

The Ambasador said Russia too was a major producer of potato in the world, and “we cannot compromise the interests of domestic producers through import of potato from India”.