In the backdrop of America imposing a 50% tariff on Indian products, External Affairs Minister S. Jaishankar has encouraged increasing trade with Russia, pressing Russian firms to deal "more intensively" with Indians.
Referring to India's rapidly emerging economy and programmes like 'Make in India,' Jaishankar pointed out that these new developments offer new opportunities for foreign enterprises.
"A USD 4 trillion plus GDP India which is to grow at 7% in the foreseeable future would have a clear requirement for gigantic amounts of resources from reliable sources. In certain situations, it might be guaranteed supplies of basic commodities, fertilizer, chemicals, and equipment, being the right examples. Its burgeoning infrastructure presents business opportunities to companies with a proven track record at home," he added.
He further said, "The 'Make in India' and other such programs have created new avenues for foreign companies. The modernization and the urbanization of India create their own needs, stemming from changes in consumption and living patterns. Every one of these aspects is an invitation to Russian companies to get more deeply involved in their Indian counterparts. Our effort is to urge them to seize that challenge."
Citing the historical association between India and Russia, Jaishankar urged to make "strenuous efforts" to diversify and balance trade.
"India and Russia have fostered one of the most steady relations among the leading nations in recent times is now well-known. But that did not necessarily convert into meaningful economic cooperation. Our trade basket is still narrow and until recently, so was our trade volume. It might have increased in recent years, but then so has the trade deficit. Both diversification and trade balancing now desperately require greater efforts on our part. Ultimately, they are necessary not only to achieve higher trade targets but even to maintain current levels," he added.
Jaishankar also urged increased cooperation to fuel growth and enhance development, stating India's willingness to invest, joint ventures, and other types of cooperation.
"It is quite obvious that there is much that Russia and India can do for one another in bringing about growth and fostering development. What we try to do as Governments is to offer the direction and make conditions favorable for economic activity to occur. Clearly a lot revolves around trade but there is increased inclination towards considering more investment, joint ventures and other types of cooperation. Initially DPM Manturov and I are here among you to facilitate those processes. We intend to clearly communicate that a lasting strategic partnership has to have a robust and sustainable economic dimension," he stated.
Referring to the signing of the Terms of Reference (ToR) for the India-Eurasian Economic Union Free Trade Agreement, Jaishankar stated, "We have today signed the Terms of Reference for the India-Eurasian Economic Union FTA. That would certainly make a difference if concluded. We discussed inspiring joint ventures in areas where the demand is already proven. Some projects of major investment sizes were also discussed. Our skilling and mobility initiatives have begun to take flight. The wish to enhance connectivity is also manifested through several choices."
He further added, "But ultimately, what we really want is for businesses to come forward with confidence. Not only that, but also make sure that there is a close link between what Governments are negotiating and what businesses are planning."
Jaishankar's initiative to increase trade with Russia comes following the US, which had already implemented a 25% ad valorem tariff on Indian products, bringing in an extra 25% tariff from August 27, bringing the aggregate duty to 50%.
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