Putin visit may strengthen trade ties

NEW DELHI: Economic relations between India and Russia is all set to reach a new high in February ’07 when Russian Prime Minister Vladimir Putin visits India. A bilateral economic pact — on the lines of a comprehensive economic cooperation agreement (CECA) including goods, services and investment — is likely to be signed during his visit.

Speaking to ET, official sources said Mr Putin’s visit to India ’07 was more or less confirmed. “If everything goes well, we will have a trade and investment agreement in place during that time,” an official said.

The joint study group (JSG) on trade and investment, studying the feasibility of a bilateral CECA, is expected to come up with its recommendations next month. “Whatever is recommended by the JSG will be given a formal shape later by the two PMs,” an official said. The government believes that a bilateral trade and investment agreement will be a win-win for both the countries.

Russia is flush with oil money which can be invested in India. Indian exporters stand to benefit from the huge Russian market for goods. The country’s scientific prowess could also give a boost to India’s R&D. Russia can, meanwhile, gain from India’s experience in IT and software, officials concluded.

A CECA between India and Russia would certainly give a much-needed fillip to bilateral trade which had lowered significantly in the past few years. Indo-Russian trade in ’04-05 stood at $1.8bn, of which India’s exports to Russia amounted to $597m, while India’s imports from Russia was $1265m.

The countries now want to increase two-way trade to $10bn by ’10. India would also want protection to geographical indication to be included in the bilateral pact.