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Till early 1990s, Belarus (then a part of the erstwhile Soviet Russia) was a major supplier of military hardware and heavy mining equipment to India.
Currently, it is India’s second largest source for potash fertilizers. Belarus is keen to regain lost markets in Indian mining and defence sector and is also positioning itself as an attractive investment destination in the three-country (Belarus, Russia, Kazakhstan) economic block. In an interview with Business Line , Belarusian Ambassador to India Vitaly A. Prima outlines the roadmap. Excerpts.
What is the trend of Indo-Belarus trade?
In the January-June period, exports from Belarus were $124.8 million. Potash contributed nearly 90 per cent of Indian imports. India exported $100.5 million worth of goods, including pharmaceutical products, to Belarus. It is far below the potential and there is need to step up cooperation in order to increase bilateral trade.
Why do you think Belarus should be an attractive investment destination for Indian business?
The geographical location of Belarus, coupled with its developed logistics and manufacturing sectors, offers investors opportunity to access large markets in the EU and CIS countries.
Moreover, the Customs Union and Common Economic Space of Belarus, Russia, and Kazakhstan (CES) offer investors an automatic entry in vast single Eurasian markets operating under common business regulations.
To my mind, India, with its huge experience, can render assistance in the development and promotion of the Belarusian pharmaceutical sector.
For the last couple of years, Belarusian mining gear maker Belaz in eyeing a major order from Coal India. The efforts drew a blank so far. The tender was cancelled twice. Belaz was the single bidder in the last tender that was scrapped in June. What is going wrong? Does it impact your India plans?
Belaz controls 30 per cent of the global market for heavy dump trucks. Since 2011, Belaz and its Indian partner JV Gokal have been participating in tenders to provide 77 heavy-duty mining trucks with 11-years MARC (service contract). To ensure long-term services, Belaz also set up a joint venture in India.
I am confident that the conditions proposed by the Belarusian side (in the last tender) have been attractive. The favourable conclusion by the tender committee (before the CIL board cancelled it) made us to believe that the contract between Belaz and CIL would ensure higher level of cooperation between both the countries.
Irrespective of the final decision of CIL, I am hopeful that the Belarusian mining machinery will move to the fore on the Indian market.
Belarus is a major producer of air-defence infrastructure. What is the outlook of collaboration in this sector?
Belarus has keen interest in strengthening of traditional friendship and broadening cooperation, including military-technical cooperation.
The two countries signed the bilateral agreement on military-technical cooperation. The respective inter-governmental commission was established. The next session of the above commission is going to be held at the end of this year.
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