Russia’s top businesses are looking for Indian conglomerates to jointly manufacture industrial goods for highly sophisticated fields, such as nuclear, micro-electronics and space exploration.
A high-level Russian delegation led by Novgorod Governor Andrey Nikitin met business groups in Delhi earlier this week to explore opportunities in joint industrial manufacturing and enhancing bilateral trade.
“Exports to India are on the rise. And we would like, as a result of the dialogue that we have with you, to consider the possibilities of mutual industrial development in terms of microelectronics, biotechnology, food, electrical engineering, and other areas,” Nikitin assured.
The delegation, in particular, mentioned firms such as Splav, NPK SPP and Stashevskoye which are ready to jointly manufacture industrial items with Indian units.
Splav manufactures equipment for nuclear power plants and supplies for industrial production in India. NPK produces optical equipment, including for the space agency Roscosmos.
The Russian region, located between Moscow and St. Petersburg is home to primarily large industries. It has also shown interest in new sales outlets for products made from Novgorod timber processors, in joint work in the area of pharmaceuticals, and in exploring options for the supply of industrial equipment.
On Monday, Indian Foreign Minister S. Jaishankar said that the two countries have exchanged a list of products for gaining access to their markets in India and Russia, highlighting that discussions on expanding trade have been going on for some time - even before Russia's special military operation in Ukraine launched in February.
Besides consumer durables and pharmaceutical items, Russia has also requested 41 items be prioritized, including landing gear components, fuel systems, communication systems, fire extinguishing systems, life jackets and tires for aircraft and helicopters.
Traders said that Indian exporters are evaluating the proposals as they have to be careful with western sanctions slapped on Russia.
"With payment mechanisms all set to take off in a couple of days and logistics options opening up, we are hopeful that shipments will start under this mechanism from the current month," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
India has emerged as a strong trade partner for Russia and is expected to remain so in 2023, according to a new S&P Global Market Intelligence report released last month.
In September, due to a massive jump in trade in crude oil, fertilizers, and coking coal, Russia ranked as India’s third-largest exporter and fifth-biggest trading partner.
What's more, between April and September, Russian exports were estimated at $21.3 billion against $4.1 billion for the same period in the last financial year.