$100 billion import and export opportunity

India Indian Prime Minister Narendra Modi pays official visit to Russia Work with President Putin to promote bilateral trade and economic relations and develop a trade roadmap to achieve Target of USD 100 billion (Rs 834 lakh crore) annual trade by 2030This is one of the biggest import and export opportunities that every importer and exporter should consider in order to expand their business.

The goal is to improve

1. Import and export trade structure
2. Trade procedures/process
3. Emphasis on trading in Indian Rupee (INR)
4. Provide job benefits, and
5. Strengthen logistics support
6. Focus on “Made in India” products

Why does India want to take India-Russia trade volume, growth and balance to a higher level?

1. In 2023, India’s trade with Russia reached a record high of $65 billion.
2. Trade volume increased significantly by 66% last year and is expected to increase by another 20% in the first quarter of 2024.
3. India’s trade deficit with Russia is $57 billion during 2023-2024.
4. Therefore, India is actively looking forward to increasing its exports to Russia.

Major decisions and measures

1. Removal of trade barriers: Both India and Russia are committed to removing trade barriers and facilitating smoother trade.
2. Local currency exchange: Introducing a system for conducting transactions using Indian Rupee (INR) to reduce dependence on the US dollar and manage exchange rate risk.
3. Simple customs procedures: Speed ​​up the process and flow of goods trade between India and Russia by simplifying customs formalities.
4. Improved connections: Develop new sea and land transport routes, such as:
   • Chennai-Vladivostok sea route
     
   • The Northern Sea Route, and
     
   • International North-South Transport Corridor via Iran
     
     Image source – Internet
5. Energy and Infrastructure Investments: Focus on increasing investment in the energy sector and infrastructure construction to support trade growth.
6. Diplomatic Expansion: To strengthen diplomatic relations between India and Russia, two new consulates are opened at the following locations:
   • Kazan and
   • Yekaterinburg
7. Memorandum of Understanding (MoU): 22 memorandums of understanding were signed covering various areas, including:
   • Memorandum of Understanding on Climate Change,
   • Memorandum of Understanding on Legal Arbitration
   • Memorandum of Understanding on Authentication of Pharmaceutical Products.
8. Commercial Engagement and Relationships: Organize B2B meetings, business promotion events and business delegation exchanges to improve business relations.

Trade Dynamics Import and Export Opportunities

1. Indian Rupee Trading: A Game Changer

A key feature of the trade roadmap is that transactions will be conducted in Indian Rupee (INR) to reduce reliance on the US dollar, lower transaction costs and exchange rate fluctuation risks. This will provide Indian exporters with a stable source of income to grow their business and create a conducive environment for business expansion.
Key points: Learn to compile prices in Indian Rupees instead of US Dollars (USD) in accordance with Incoterms (CIF or FOB)

2.Job benefits: Making trade easier India and Russia have agreed to provide tariff concessions on different types of goods to facilitate trade. These import duty reductions will make Indian products more competitive in the Russian market, encouraging exporters to explore and expand their product range.
Key points: Keep an eye out for exemptions/incentives that will be announced by the government. The Import and Export Federation will announce it as soon as it is announced!

3. Logistical support: Smooth operation of supply chain efficiency

Improving logistics support is a key focus of the roadmap. By improving transportation and infrastructure links, the time and cost required to transport goods between India and Russia will be significantly reduced. Logistics efficiency is expected to enhance the overall competitiveness of Indian exports.

Key points: Study the 3 different trade roots mentioned above and determine how to improve your logistics costs to gain more profits based on your location in India.

Which products should Indian exporters focus on right now?

The Import-Export Union has close ties with a well-known Russian supermarket chain and is therefore well-positioned to take advantage of these opportunities. Here are some promising products worth considering to take advantage of all import-export opportunities:

1. Agricultural products: Coffee, tea, mate and spices.
2. Textile Industry: Cotton, wadding, felt, non-woven fabrics, yarn, twine.
3. Engineering Products: Machinery, nuclear reactors, boilers.
4. Fertilizer, food, energy oil and coal
5. Organic and Inorganic Chemicals
6. Pharmaceutical Products
7. Steel

Ten helpful steps to take advantage of all import and export opportunities

1. Research the Market: Understand the needs and preferences of Russian consumers.
2. Establishing a connection: Leverage the alliance’s network to build relationships with Russian importers.
3. Take advantage of job benefits: Take advantage of tariff reductions to price your products competitively.
4. Trading in Indian Rupee: Reduce your currency risk by trading the Indian Rupee.
5. Product quality: Products should meet the quality standards required by the Russian market.
6. Packaging quality: Packaging should be attractive to Russian consumers and should protect the goods during transportation.
7. Logistics functions: Optimal use of improved logistical support ensures smooth, timely and cost-effective delivery.
8. Comply with regulations: Stay informed about Russian import regulations and ensure compliance.
9. Promote your brand: Participate in marketing activities to build brand awareness in Russia.
10. Get expert advice: Work with trade experts and leverage the alliance’s resources for guidance.

Import and Export Federation Recognising the huge potential of this intensified trade roadmap. Our alliance has strong links with one of Russia’s leading supermarket chains and is well placed to take advantage of all import and export opportunities. We are always keen to hear from new exporters at our Export Business Startup Masterclasses about the products they wish to export to Russia.

For those committed to mastering the entire export cycle to complete export shipments worth a billion dollar opportunity, we offer flexible and in-depth online export courses and guarantee support for all import and export opportunities for your first shipment.

Media References

1. “India’s $100 billion trade target with Russia is feasible” – The Hindu (July 10, 2024)
2. India, Russia to boost bilateral trade to $100 billion by 2030 – Optimizeias (July 10, 2024)
3. India, Russia set target of $100 billion bilateral trade by 2030 after Modi-Putin meeting Telegraph India (July 10, 2024)