Russia, India set higher trade goal

MOSCOW: The presidents of Russia and India on Thursday pledged to increase the volume of trade between their huge nations to $10 billion next year.

Meeting with Russia's President Dmitry Medvedev in the Kremlin during her first visit to Russia, Indian President Pratibha Patil said India's economy had focused too much on Western markets and consumers in the past ``while ignoring the great potential that always existed'' between India and Russia.

Patil announced that the two countries set a goal to boost the bilateral trade to $10 billion in 2010. Medvedev expressed confidence that this target as feasible ``in the nearest term.''

Trade between Russian and India came to $7 billion in 2008, and Medvedev said it increased by 15 percent in the first five months of this year, despite the economic downturn.

Russia's major exports to India are steel, iron, coal, paper and military hardware, while India's main exports to Russia are food, clothing and pharmaceuticals.

Russian news agencies quoted Sergei Chemezov, head of state-run industrial giant Russian Technologies, as saying on the sidelines of the talks that the two countries would sign a new agreement this month on a Soviet aircraft carrier which Russia pledged in 2004 to refurbish and deliver to India. Moscow has repeatedly pushed back the projected delivery date and raised costs for the refurbishment.

Russia and India enjoyed warm relations in the Soviet times, but the ties visibly soured in the 1990s.