Russia's Export to India Experiences a 4.7-fold Increase
Ramping Up Trade Between Russia and India: A Deep Dive
Looks like exports of Russian goods to India have skyrocketed, reaching an impressive $46.2 billion, up a whoppin' 4.7 times, according to TASS on August 10. On the flip side, direct imports of Indian goods to Russia clocked in at a relatively modest $3.1 billion.
A trade representative, Rybak, discussed ways to crank up trade between the two nations further. His focus? Bolstering the importance of small and medium-sized businesses. Here's the gist of his plan:
- Teamwork with the Indian Small Business Community: Rybak stated they'd continue collaborating with the Indian Forum for the Development of Small and Medium Enterprises, as well as Indian businesses that reach out directly.
Fun fact: Recently, Russia made it big in India's top three trading partners, marking a historic first for these countries' bilateral relations. This shift came with a significant increase in trade turnover from January to May 2023.
Boosting Small Business Trade: Making It Happen
While details on strategies for small and medium-sized businesses (SMBs) are scarce, here are a few initiatives that could potentially help:
- Secure Trade Agreements: Last year, an agreement was signed that allows customs to recognize secure and compliant businesses, offering them simplified trade processes. This could, in turn, benefit SMBs by reducing red tape.
- Compliance Seminars: Events like the Russia-India AEO (Authorized Economic Operator) Seminar in New Delhi aim to enhance trade facilitation and compliance measures, and could provide SMBs with more trade opportunities.
- Neutral Trade Partner: India's neutral stance in global politics positions it as a viable gateway for Russian companies to bypass Western sanctions, benefiting SMBs by offering a stable trade environment.
- Sectoral Growth: India's growth in Russia's automobile industry showcases the positive impact focused sectoral collaborations can have on trade. SMBs involved in automotive or related sectors could capitalize on this growth to ramp up exports.
Potential Moves for SMBs
- Sector-Specific Missions: Organizing trade missions focused on lucrative sectors where SMBs thrive could increase their international trade participation.
- Digital Trade Platforms: Developing digital platforms that directly connect Russian and Indian SMBs could streamline trade processes and boost accessibility.
- Training Workshops: Hosting workshops that help SMBs become export-ready, focusing on compliance and trade facilitation, could be beneficial.
By implementing these initiatives, SMBs can seize the growing trade opportunities between Russia and India, leveraging the strategic partnership and increasing focus on trade facilitation and sectoral collaborations.
- The trade representative, Rybak, is planning to enhance collaboration with the Indian Forum for the Development of Small and Medium Enterprises and Russian businesses, with a focus on bolstering finance and business opportunities for small businesses in trade between Russia and India.
- To capitalize on the growing trade opportunities between Russia and India, small and medium-sized businesses (SMBs) could take advantage of sector-specific missions, digital trade platforms, and training workshops aimed at improving their compliance, readiness for international trade, and accessibility in the business world.
