Transborder Commerce

                                                                                                                                            By Amit Mittal 

At the 22nd Annual Summit in Russia, President Vladimir Putin and Prime Minister Narendra Modi primarily discussed economic issues and set a bilateral trade target to increase bilateral trade to 100 billion dollars by 2030, including the use of national currencies to circumvent Western sanctions. 

Addressing a press conference in New Delhi Russian Charge d’Affaires in India Roman Babushkin said trade has grown by 10 per cent as compared to the corresponding period of the previous year. The target which has been established by the leaders the new one to achieve 100 billion US dollars in bilateral trade by 2030 seems quite realistic for the benefit of the two Nations the most important point in the joint statement is that we have decided to go ahead with the establishment of

the national currencies settlement.

We will also continue with the issues of quick payments for alternatives to

Swift with the focus on digital instruments especially when it comes to the digital currencies of central banks.

We will train the Indian seafarers to better and deeper explore the area that would also cover the Northern SE road navigation and hydrocarbon supplies

through the Eastern Maritime Corridor and of course, when it comes to regional connectivity remains our priority area by the way according to the estimates by the year 2030 the kg volume will double by approximately 

small modular reactors, nuclear medicine Force generation of

Technologies fast breeder reactors and many other areas. 

Russia has the most advanced competitors with the safest Technologies in order to meet the growing Indian demands in this area. we need to identify a second side for the nuclear power plants along with the kudan kolam nuclear power plant which we are successfully implementing along with that there were a lot of other areas which would make our strategic partnership comprehensive we will resume our inter-parliamentarian cooperation will continue intense NSA level contacts you have seen how big is the part dedicated to counterterrorism in the joint statement so we have quite a serious convergence in this area and serious commitment to go ahead and cooperate bilaterally and multilaterally.

The leaders have condemned terroristic attacks which were committed on the territories of both countries recently. The new and very promising Dimension would be related to our labour Mobility which is all already happening that is a new dimension, it is able to become a new dimension in our People contacts and business opportunities relevant documents are in the pipeline to make this area more regulated we are working.

We have committed ourselves to fulfilling all obligations, and there is a clear understanding that Russia’s active involvement in various areas contributes significantly to boosting local defence production in India. Another crucial aspect I’d like to highlight pertains to education. In April of this year, we hosted the first Russia-India Education Summit. It’s essential to capitalize on this momentum and engage more universities. Specifically, we need to proceed with a dialogue on mutual recognition of diplomas. This step aligns with the facilitation of the visa regime—a desired trend. 

Additionally, we’ve extended an offer for a visa-free group tourist agreement. This proposal originated in 2022 when President Putin first discussed it with Prime Minister Modi. We hope for an early conclusion to this agreement, demonstrating our serious commitment to bilateral and multilateral cooperation.

Regarding recent events, both leaders have unequivocally condemned terrorist attacks on our respective territories. A promising new dimension lies in labor mobility, which is already underway. By year-end, we anticipate further cooperation in spare parts, joint ventures, servicing, technology exchange and localization.

Internationally, our close coordination continues within the UN, G20 and BRICS frameworks. Our focus remains on democratizing global governance, including reforming the United Nations Security Council. Russia reaffirms its unwavering support for India’s permanent membership in the Security Council. In summary, the outcomes of this summit, driven by strong mutual political will, aim to expand, deepen, and diversify trade, economic cooperation, and strategic partnerships for the best interests of our friendly nations.

Regarding Indians in the Russian army, Babushkin clarifies: ‘We have never sought Indian recruits for the Russian army.’ Neither the Defense Ministry websites nor any embassies have expressed such intentions. While a small number—50 to 60 or even 100—may be present, they play no significant role in conflicts. Russia has ample volunteers, rendering foreign recruits unnecessary. These individuals primarily seek commercial opportunities and advantages, including facilitated Russian citizenship. The Russian army has not actively recruited them. Most are on an illegal basis, holding student, tourist or business visas that do not permit contractual obligations. President Putin’s proposal for visa-free group tourist visas is currently on the table in India. We eagerly await progress. As for education, the potential is vast. Despite having around 25,000 to 30,000 Indian students in Russia, this number pales in comparison to the real demand, underscoring the untapped potential of Russian universities.

Both India and Russia are actively discussing ways to diversify their trade basket, aiming to reduce the trade deficit. Among the exciting prospects on the horizon is the possibility of a long-term contract for liquefied natural gas (LNG) and petrochemicals between Indian and Russian companies.

The past year witnessed remarkable growth in these sectors. In 2023, the results were staggering: 90 million tons of LNG, 45 million tons of crude oil. To put this in perspective, just before February 2021, the annual figure stood at a mere 2.5 million tons. The surge in crude oil exports has been explosive and India now enjoys a stable share of crude oil imports from Russia, covering approximately 30%.

While the situation with the Gaspro contract remains complex, there’s a clear trend: Indian companies are increasingly demanding LNG. Despite the challenges, further contracts between Russian suppliers and Indian consumers are under consideration. The next five to seven years could witness significant developments in this area.

India’s petrochemical industry grows at an impressive rate of over 10% annually. Recognizing this, Russia has actively provided technology support. Notably, our Reliance project paved the way and now Nayara is executing a project in Vadinar—a crucial step after refineries. The focus is on polyolefins and there’s immense potential for collaboration in various petrochemical technologies.

In summary, India and Russia are poised to strengthen their economic ties, leveraging LNG, crude oil, and petrochemicals. These strategic partnerships benefit both nations and contribute to their shared prosperity. 

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In the grand orchestra of global diplomacy, the year 2023 witnessed a harmonious symphony between India and Africa, resonating with the rhythm of shared history and mutual respect. As India strums the chords of its aspiration to ascend to the status of a global superpower, it orchestrates a melodious tune with Africa, fostering robust trade and business relations.

The G20 summit in New Delhi served as the grand stage where Prime Minister Narendra Modi struck a noteworthy note. He advocated for the inclusion of the African Union as a permanent member of the G20 ensemble, underscoring the Union’s crucial role in the symphony of global advancement.

Since gaining independence, India has nurtured a melodious relationship with Africa. The shared history between India and Africa forms the foundation for the future relationship between these two regions, a melody that continues to evolve.

The fiscal year 2022-23 marked a significant crescendo in India-Africa trade, reaching a remarkable $98 billion. This serves as a testament to the burgeoning business and economic ties between the two regions, a melody that is growing louder and more harmonious.

The India’s Technical and Economic Cooperation Programme (ITEC) has played a pivotal role in fostering cooperation in human resource development. However, there is room for further progress. The Africa Expert Group (AEG) has put forth the ‘India-Africa Partnership: Achievements, Challenges, and Roadmap 2030,’ which delineates a strategy to fortify the partnership, a sheet music for the future symphony.

Africa is in the midst of significant transitions towards regional integration and is dedicated to the principles of democracy, peace, and progress. Nonetheless, certain countries within the continent continue to grapple with challenges such as insurgency, ethnic violence, and terrorism. As external powers, including China, the US, Japan, Türkiye, and UAE, vie for stronger relationships with Africa, it is imperative to safeguard the interests of the African nations. These countries are in pursuit of market access, energy and mineral security, and enhanced political and economic influence. Despite facing certain challenges in bolstering its ties with Africa, India acknowledges the continent’s significance and potential. India is committed to forging stronger ties with Africa and has initiated several measures in this direction. The creation of an Africa Growth Fund (AGF) to facilitate access to finance can potentially stimulate trade. A special package of measures aimed at enhancing project exports, fostering cooperation in the shipping sector, promoting trilateral cooperation, and deepening S&T cooperation has been proposed. Socio-cultural cooperation is also deemed essential for augmenting India-Africa ties.

Defence and security cooperation is integral to strengthening the relationship between India and Africa. India acknowledges the significance of Africa and is committed to building stronger partnerships with African countries. The Asia-Africa Growth Corridor, an economic cooperation agreement between India, Japan, and several African countries, exemplifies this commitment. India enjoys a substantial partnership with Africa and a wealth of goodwill. It is crucial to periodically reassess India’s Africa policy and maintain a laser-like focus on its implementation.

India’s emergence as a global player is inextricably linked with the nature of its partnership with Africa. As India continues on its trajectory towards becoming a superpower, its relationship with Africa will undoubtedly play a pivotal role. This symphony of shared aspirations between India and Africa is a melody that will continue to resonate in the grand orchestra of global diplomacy.

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                                                                                                                                   by Jjuliaa Gangwani

In the year 2023, India and Europe made significant strides towards strengthening their bilateral relationship. Through a series of strategic engagements and initiatives, both partners sought to deepen their economic ties and pave the way for new opportunities. 

One of the most notable developments was the establishment of the India-Middle East-Europe Economic Corridor (IMEC), which promises to transform the economic landscape by enhancing trade relations and connectivity among participating nations. The IMEC is a testament to the shared commitment of India and Europe towards forging a vibrant economic partnership that is mutually beneficial. 

Additionally, the European Union and India set up the Trade and Technology Council (TTC) in 2023, which is designed to deepen strategic engagement in trade and technology between both partners. The TTC represents a major step forward in the relationship, reflecting the mutual commitment of both partners to fostering a collaborative environment that supports technological innovation, trade, and economic growth. 

Bilateral trade between India and Europe reached USD USD 185.16 Billion in 2022-23, with India exporting USD 96.90 Billion worth of goods to Europe, while imports totalled USD 88.26 Billion. This underscores the significant role that Europe plays as a critical trading partner for India, contributing 21.8% to India's total exports. Despite the challenges posed by a deficit of USD 266 Billion in merchandise trade, largely contributed by petroleum and precious gems, the surplus generated by services trade helped maintain an overall manageable deficit. This is a testament to the resilience and strength of the partnership between India and Europe. 

In conclusion, 2023 was a pivotal year for India and Europe's diplomatic and business relations, with the initiatives taken solidifying existing partnerships and paving the way for future collaborations. The IMEC and TTC stand as symbols of the shared vision of a prosperous and interconnected future. With trade and technology at the forefront, both partners are poised to navigate the complexities of the global stage with a spirit of cooperation and mutual benefit, thereby creating a more peaceful and prosperous world.

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                                                                                                                         by Jjuliaa Gangwani

In 2023, the diplomatic and economic ties between India and the Latin America and Caribbean (LAC) region saw significant growth. This was a result of a strategic shift in India’s foreign policy, led by Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar.

India’s intensified focus on the LAC region, home to over 660 million people and a combined GDP surpassing US$6 trillion was a calculated endeavour to tap into a market ripe with opportunities in consumer goods, healthcare, education, and more. This shift was led by a new generation of Indian diplomats, entrepreneurs, and academicians.

The relationship between India and Latin America opened a window of opportunity in a post-pandemic, armed conflict-, climate crisis-stricken world. The two blocs have complementary economies and hold a series of strategic resources that could leverage the trade and investment ties for mutual benefit.

In terms of food security, 

productivity in the food sector in many countries of the region is a source of learning for India. In the case of the energy transition and the climate agenda, there are great opportunities for adding technological value in terms of production of strategic commodities in Latin America and the Caribbean, such as lithium.

Health as a global public asset also finds enormous potential in this relationship, as confirmed during the pandemic, with the provision of vaccines. These developments are related to processes of Industrialization 4.0, the knowledge economy, and state-of-the-art technologies that have a vibrant impact on the relationship.

In terms of economic opportunities, the prospects for cooperation between Latin America and India are promising. The Caribbean region, with a population of over 40 million, is a rapidly growing market where India is seeking to expand its trade and investment, especially in sectors such as tourism, pharmaceuticals, and infrastructure.

India’s bilateral trade in the region surged close to USD 50 billion during the financial year 2022-23. The external affairs minister said these figures are a “testament to the strength and potential of our economic partnership”.

India has a natural bonding and convergence of interests on key global issues with Latin American and Caribbean countries and New Delhi’s focus has been on expanding the two-way engagement in a range of areas, including trade, investment, and climate change.

In conclusion, the year 2023 marked a significant milestone in the diplomatic and economic relations between India and the LAC region, setting the stage for further cooperation and mutual growth in the years to come.

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