NEW DELHI (Realist English). International sanctions against Russia are a chance to strengthen the positions of Indian exporters in the Russian market. This was stated by the President of the Federation of Indian Export Organisations (FIEO) in an interview with CNBC Dr A Sakthivel.
On March 23, India announced its intention to prolong payment agreements with Russia. According to Sakthivel, the mechanism of trading in rupees and rubles will appear in the next week. FIEO represents the interests of more than 200 thousand exporters and oversees the Export Promotion Council.
The Indians do not intend to reduce the volume of payments between countries. The new agreement will allow New Delhi to buy the Russian energu carriers and other commodities utilizing rupees and rubles. Four to five nationalized Indian banks to be engaged in the trade operations.
Previously, negotiations have been held between the heads of the treasuries. “Export to Russia is not much, only in agriculture and pharmacy products. Now that the whole of the West is banning Russia, there will be lot of opportunities for Indian firms to enter Russia.” Sakthivela believes.
According to him, New Delhi has taken a “neutral position” in the Ukrainian crisis: “The government will take into account all the factors. The government is playing it very carefully,” The U.S. is India’s biggest export market. According to India’s official data, India-U.S. trade in calendar year 2021 was $112.6 billion, consisting of $71 billion in exports and $41 billion in imports.
The trade turnover with Russia is much lower: in 2021, Indian exports amounted to $3.3 billion. These are mainly pharmaceutical products, tea and coffee. Imports were estimated at $6.9 billion, including defense goods, mineral resources, fertilizers, metals and precious stones. According to CNBC, India is 85% dependent on Russian arms supplies.