India-Russia laud record level of bilateral trade, optimistic about future of economic relationship

After top-level talks between Prime Minister Dr. Manmohan Singh and President of the Russian Federation Vladimir V. Putin, both countries expressed their satisfaction with the record level of bilateral trade, and remained optimistic about the future of their trade and economic relationship.

Expressing their contentment with the recent bilateral trade trend, which reached a record level of over US $ 11 billion in 2012, both sides agreed that investment collaboration was an important component of economic cooperation that could also help in increasing bilateral investment and trade.

Welcoming the identification of priority investment projects on both sides as an outcome of the first meeting of the India-Russia Working Group on Priority Investment Projects, they noted the successful outcome of the 2nd session of India-Russia Working Group on Modernization and Industrial Cooperation.

With an eye on the future prospect of the relationship, the Modernization and Industrial Cooperation, which was held in Moscow, saw both sides acknowledge their mutual desire to further strengthen bilateral cooperation in areas of civil aviation, chemical and fertilizer industry, mining and automobiles.

India and Russia also underlined the considerable potential for cooperation in the sectors of oil and gas, pharmaceutical and medical industry, infrastructure, mining, automobiles, fertilizers, aviation, as well as in modernization of industrial facilities located in the two countries.

The two sides also emphasized the importance of the India-Russia Inter-Governmental Commission on trade, economic, scientific, technical and cultural cooperation (IGC) functioning as a key mechanism for developing bilateral interaction in the economic and investment fields.

They also noted the positive outcomes of the 19th session of the IGC, which was held in Moscow on October 4, 2013.

India and Russia have also agreed to work towards the creation of a Joint Study Group for studying the possibility of signing a Comprehensive Economic Cooperation Agreement (CECA) between India and the Customs Union of Belarus, Kazakhstanand the Russian Federation.

The CECA is presently under the consideration of the Eurasian Economic Commission.

Both sides also welcomed the increasing business interactions. The booming business interactions have been demonstrated by the successful traditional round table "Russia-India Business Dialogue" organized in the framework of the 17th Saint Petersburg International Economic Forum and the seventh India-Russia Forum on Trade and Investment, also held in St. Petersburg.

The leaders also welcomed the two meetings in 2013 of the reconstituted Chief Executive Officers Council, which was working out sectors and opportunities for greater business cooperation.

Meanwhile, the two sides agreed that there were still numerous challenges relating to the growth of the world economy, and the leaders considered it necessary to boost multilateral cooperation in order to tackle them.

Russia and India stressed the necessity to create a more representative and legitimate international financial architecture.

The leaders agreed that the primary task in this connection was to complete the Fifteenth General Review of IMF Quotas not later than in January 2014.

The two sides stressed that the G20 policy coordination process needs to pay more attention to monetary policy in the reserve country currencies in order to protect the international financial system and to prevent destabilization of financial markets.

Both India and Russia attached particular importance to the G20 as the primary forum for international economic cooperation.

India highly appreciated both the Russian G20 Presidency as well as the outcomes of the Saint Petersburg G20 Summit.

India stressed that the continuous implementation of its recommendations with respect to the decisions aimed at speeding up world economic growth, midterm fiscal consolidation, higher employment, liberalization of trade and promoting development would facilitate the solution of the key global economic issues.

Russia expressed their gratitude to India for the significant contribution towards success of the Saint Petersburg Summit.