Mail News Service
Jamshedpur, April 26: The current war between Russia and Ukraine has lead to economic embargo on Russia by EU countries including the USA, UK and other western countries. This has created a huge trade space for Indian products in Russia. The Confederation of All India Traders (CAIT) mentioned that though any war creates havoc, destruction and disintegration in war-torn nations, opportunities emerge. In the case of Indian products and services could find a ready Russian market to fill the void created by the country’s business links with USA, Britain other European countries who stopped dealings in protest against the Ukraine War launched by Russia. These countries, prior to their sanctions, were exporting huge quantities of several types of products but the war between Russia and Ukraine changed the entire economic scenario of the former nation. Russian trading houses have been looking India’s way for economic fillip. In fact, several Russian trading houses have shown inclination towards Indian products and had approached CAIT for help in locating suppliers.
CAIT National Secretary General, Praveen Khandelwal and National Secretary Suresh Sonthalia in a joint statement said that CAIT through its State Chapters had identified various small manufacturers, distributors and traders who were capable of meeting Russian requirements as per the first list received from Russia. Though regretting the Russia-Ukraine war and hoping for an early end to it, Both CAIT officials said, “The response is enthusiastic and encouraging and manufacturing units and traders are more than willing to supply goods to Russia. The details of the requirements, its logistics, payments and other issues are being discussed and it is hoped that very soon a structure will be worked out. We foresee a considerable boost in export of Indian products to Russia.”
CAIT will convene a daylong conference on May 4 in New Delhi in which trade leaders across the country will be present to to discuss these issues and also deliberate on future strategies on simplification of GST, e-commerce policy and other pertinent issues.
Khandelwal and Sonthalia said that considering the current scenario, Russia could be a huge market for Indian exports. Trade verticals like FMCG products, consumer durables, packed food items, dairy products, Vegan food items, readymade garments, footwear, toys, textiles, auto spare parts for both, two wheelers and four wheelers, automobile accessories, lubricants, motor oil, builders’ hardware, tools, machinery products, computers and their peripherals, computer and other stationery items, paper and various other items could be the most favored products for exports to Russia. “However, instead of big brands, small emerging brands in India can play a major role in supplying quality goods at most competitive prices. Further, the sanctions against Russia it is obvious that Rupee-Ruble transactions are better options than that of Dollars,” observed Praveen Khandelwal and Suresh Sonthalia.
It was learnt that both Russian and Indian governments had agreed to set up a payment mechanism between the two countries on the pattern of SWIFT. This agreement would pep the ease of doing business between two countries.
CAIT Vice Chairman, Brij Mohan Agarwal said, “Two types of strategy, short term and long term needs to be adopted for trade between India and Russia. Under the short term policy, the items of immediate need should be given preference and for permanent basis, other items that can have a good market in Russia, could be identified for supply of our products to Russia. Short term is very necessary because in absence of any more supplies for daily use items like consumables and food items might face shortage in the near future and therefore such items need to be expedited immediately. Russia should also consider supplying crude oil to India at a discounted price though it is for both the governments to decide.”
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