The Federation of Indian Export Organisations (FIEO) has warmly welcomed the outcomes of the recent summit between Prime Minister Narendra Modi and President Vladimir Putin. The apex body for Indian exporters stated that the joint statement issued by the two leaders provides a significant boost to trade and industrial cooperation between the two nations.
Key Outcomes and FIEO's Positive Reception
FIEO President, Mr. Ashwani Kumar, highlighted that the summit's outcomes are poised to strengthen the strategic partnership between India and Russia. The discussions, held in Moscow on July 8-9, 2024, focused on enhancing economic ties amidst a complex global geopolitical landscape. Kumar emphasized that the joint statement directly addresses critical areas of mutual interest for the business communities of both countries.
A major focus of the talks was on increasing bilateral trade and investment flows. The leaders agreed on a target to achieve a trade volume of $100 billion by 2030, a substantial increase from current levels. To facilitate this, both sides committed to removing trade barriers and promoting a more diversified trade basket beyond traditional sectors.
Focus on Payment Mechanisms and Industrial Collaboration
One of the most pressing issues for traders—payment settlements—received high-level attention. The summit paved the way for the wider use of national currencies, the Indian Rupee (INR) and the Russian Ruble, in bilateral trade. This move is expected to insulate businesses from global financial volatilities and sanctions-related banking challenges.
Furthermore, the joint statement strongly advocates for enhanced industrial and technological cooperation. Key sectors identified for deeper collaboration include:
- Energy: Including nuclear power, oil, and gas.
- Pharmaceuticals: And healthcare products.
- Infrastructure: And construction projects.
- Digital Economy: And space technology.
- Agriculture: And fertilizer supplies.
FIEO believes this will open new avenues for Indian exporters and manufacturers, encouraging joint ventures and technology transfers.
Implications for the Future of Bilateral Trade
The business body noted that the summit's outcomes send a strong positive signal to exporters and importers. The commitment at the highest political level provides the much-needed policy certainty to forge long-term business relationships. FIEO expects a surge in business delegations and a renewed focus on market access in the coming months.
Mr. Kumar stated that FIEO is ready to work closely with both governments to implement the vision outlined in the joint statement. The organization plans to organize more trade fairs, B2B meetings, and awareness sessions to help Indian businesses capitalize on the emerging opportunities in the Russian market and vice-versa.
In conclusion, the India-Russia summit has successfully laid a robust roadmap for economic engagement. With FIEO's endorsement and active participation from the business community, the ambitious targets for trade and industrial cooperation appear increasingly attainable, marking a new chapter in the time-tested partnership between New Delhi and Moscow.
