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India, Russia to trade in hard currency from 2005

At a meeting jointly organised by the Associated Chambers of Commerce and Industry of India and the embassy of the Russian Federation, the leader of the visiting Russian trade delegation, Nadeja Smagina and Arun Chatterjee of the ministry of external affairs, exhorted Indian exporters to prepare themselves for the challenge of trading in hard currency from 2005 when the rupee-rouble trade dries up.

Assocham said in a release in New Delhi on Friday that as against the current 95 per cent of India's exports to Russia against rupee repayment, the position would be reversed when bilateral trade will be conducted in hard currency.

Smagina said the focus should be on export of traditional items along with introduction of non-traditional ones and aggressive marketing efforts.

Meanwhile, the MEA pointed out that Indo-Russian trade will receive a shot in the arm as exporters from both countries would soon be able to utilise the North-South Transport Corridor linking them via Iran.

The new trade route would considerably shorten transit time and sizeably reduce transaction costs of exports.

This assessment of the ministry of external affairs was endorsed by trade representatives of both the countries.

Responding to concerns expressed by Anil Agarwal, chairman, Assocham Expert Committee on International Trade, Smagina said there was urgent need to convince Indian importers of the superiority of Russian products and technologies compared with their US and European counterparts.

''Only when such a realisation dawns, will Indo-Russian trade be able to realise its potential and joint ventures and production of third country exports become possible,'' she said.

Andrei A Sorokin, counsellor and head of the Russian embassy's cultural department said the embassy and the Russian Trade office in New Delhi had stepped up efforts to facilitate export to Russia so that bilateral trade turnover increases from $1.5 billion in 1999-2000 to over $2 billion in 2000-2001.

Agarwal stressed the need for stepping up visits by Information Technology professionals of the two countries and offered development of a website by Assocham for marketing of Russian and Indian trade and investment opportunities.

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