Russia And India Seek To Boost Trade, Switch To National Currencies

[Cobra Arbok]

Russia And India Seek To Boost Trade, Switch To National Currencies
September 16, 2018 RT 0 Comments

By RT

The emerging economies Russia and India, are interested in increasing cooperation, which could result in a greater trade turnover and wider use of ruble and rupee in trade.

“In recent years, bilateral trade has gained steady growth rate… I hope, we will be able to reach the target level of $30 billion in the coming years,” said Russian Deputy Prime Minister Yury Borisov at a meeting with Indian Minister of External affairs Sushma Swaraj in Moscow.

Borisov noted that $30 billion is still a modest figure compared to a $100 billion trade with China, which should be reached this year.

The countries are interested in increasing share of ruble and rupee in bilateral settlements, the Russian Deputy PM noted. “The expansion of settlements in national currencies is planned. Today, the share of settlements in rubles for exports is 20 percent, and for imports, about 21 percent,” he said.

Swaraj, in a statement after the meeting said: “India and Russia enjoy a special and privileged strategic partnership.”

“This partnership has strengthened over time and covers a vast agenda involving almost all spheres of human activity. India attaches the highest importance to its relations with Russia”.

India is one of the largest buyers of Russian arms, with $65 billion in deals signed over the whole cooperation, and the country will buy $4 billion of Russian arms this year.

The countries are also promoting tourism in both directions, and discussing the possibilities of working together on projects in other countries.


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This does not make sense. I thought India is in the American camp, and there is some sort of Pakistan, Iran, China, Russia supa powa axis?

@AyanRay @Novice09 @jaiind @Nilgiri @Peshwa @Śakra @Cherokee @third eye @HariPrasad @KapitaanAli @Suriya @KAL-EL @Soumitra @Tshering22

 

[Tshering22]

Russia And India Seek To Boost Trade, Switch To National Currencies
September 16, 2018 RT 0 Comments

By RT

The emerging economies Russia and India, are interested in increasing cooperation, which could result in a greater trade turnover and wider use of ruble and rupee in trade.

“In recent years, bilateral trade has gained steady growth rate… I hope, we will be able to reach the target level of $30 billion in the coming years,” said Russian Deputy Prime Minister Yury Borisov at a meeting with Indian Minister of External affairs Sushma Swaraj in Moscow.

Borisov noted that $30 billion is still a modest figure compared to a $100 billion trade with China, which should be reached this year.

The countries are interested in increasing share of ruble and rupee in bilateral settlements, the Russian Deputy PM noted. “The expansion of settlements in national currencies is planned. Today, the share of settlements in rubles for exports is 20 percent, and for imports, about 21 percent,” he said.

Swaraj, in a statement after the meeting said: “India and Russia enjoy a special and privileged strategic partnership.”

“This partnership has strengthened over time and covers a vast agenda involving almost all spheres of human activity. India attaches the highest importance to its relations with Russia”.

India is one of the largest buyers of Russian arms, with $65 billion in deals signed over the whole cooperation, and the country will buy $4 billion of Russian arms this year.

The countries are also promoting tourism in both directions, and discussing the possibilities of working together on projects in other countries.


Enjoy the article? Then please consider donating today to ensure that Eurasia Review can continue to be able to provide similar content.

This does not make sense. I thought India is in the American camp, and there is some sort of Pakistan, Iran, China, Russia supa powa axis?

@AyanRay @Novice09 @jaiind @Nilgiri @Peshwa @Śakra @Cherokee @third eye @HariPrasad @KapitaanAli @Suriya @KAL-EL @Soumitra @Tshering22

It is a wishful thinking. As much as I favour a rupee-ruble trade, it is not going to happen. Think about it; Russia needs FDI and so do we.

The greenback is the only source of FDI even if it is from a non-dollar country.
India would never put all its eggs in a single basket and therefore will not be getting favourable oil deals in rupee-ruble terms.

Ideally, this would make INR stronger and will also benefit Russia, but eh truth is, Russians would be better off taking the Yuan over the Rupee.

It is the bitter truth.

 

[Cobra Arbok]

It is a wishful thinking. As much as I favour a rupee-ruble trade, it is not going to happen. Think about it; Russia needs FDI and so do we.

The greenback is the only source of FDI even if it is from a non-dollar country.
India would never put all its eggs in a single basket and therefore will not be getting favourable oil deals in rupee-ruble terms.

Ideally, this would make INR stronger and will also benefit Russia, but eh truth is, Russians would be better off taking the Yuan over the Rupee.

It is the bitter truth.

That is a good point. However, that does not change the fact Russia seems more interested in ties with India than Pakistan, despite what some of the self-proclaimed "analysts" here have been saying about a Russia Iran Pak China axis.

 

[Kaniska]

That is a good point. However, that does not change the fact Russia seems more interested in ties with India than Pakistan, despite what some of the self-proclaimed "analysts" here have been saying about a Russia Iran Pak China axis.

Do not bring Pakistan into equation while discussing about India Russian ties...Russian are more shrewd and business minded than even China...Russia will always to try to provide some advantage to India till the situation where the profit of making business with India is less than that of Pakistan...

 

[Cobra Arbok]

Do not bring Pakistan into equation while discussing about India Russian ties...Russian are more shrewd and business minded than even China...Russia will always to try to provide some advantage to India till the situation where the profit of making business with India is less than that of Pakistan...

good point, but i do not see any situation where pakistan has more to offer to Russia than india.

 

[Nilu Pule]

Two collapsing countries coming together. No surprise in here!

 

[Cobra Arbok]

Two collapsing countries coming together. No surprise in here!

russia is collapsing? just when I thought you could not get more pathetic. i would appreciate it if you would stop derailing my threads.

 

[Novice09]

In a recent meeting between Indian and Chinese diplomats... similar Idea, trade settlements in local currency was discussed... I would not be amazed if we see more use of Ruble/Yuan while trading in Asia in upcoming 10 years or so...

 

[Khatri_pune]

i wish BRICS nations will come with their own currency like Euro....

 

[Chakar The Great]

News from 2015 ,

http://Mechanism to settle Indo-Russian trade in local currencies likely this year

 

[Nilu Pule]

russia is collapsing? just when I thought you could not get more pathetic. i would appreciate it if you would stop derailing my threads.

Russian economy is collapsing due to sanctions. Don't quote me again baniye

 

[Tshering22]

That is a good point. However, that does not change the fact Russia seems more interested in ties with India than Pakistan, despite what some of the self-proclaimed "analysts" here have been saying about a Russia Iran Pak China axis.

Both Russia and India need each other in the long run. We may be courting US while they court China, but at the very worst, both India and Russia will ensure complete neutrality while giving full political (non-confrontational) support in world bodies. It is just the way our bilateral relationship has been designed.

Even outside of the defence collaboration framework that we have, there is just too much on the stakes in terms of economic and strategic infrastructure cooperation to lose each other.

In strategic infrastructure, Russia has an excellent reputation. Whether it is constructing heavy dams in collaboration with Indian PSUs, or constructing state of the art large nuclear plants, Russia has proven enough to say that they are here to stay. Also, they are one of the very few countries who in today's world, have a very consistent and pragmatic political stand. They are the only sane voice which use facts to counter NATO's bullying or unreasonable wars.

We need them not just for India but for the world to ensure that there is a balance. Given that China has no interest in counter-police management and playing the role of a global activist, Russia is badly needed. It may also be noted that Russia is actively promoting their far east region as an investment hub for innovation companies. There is tremendous opportunity for collaboration in natural sciences, mining technologies, genetic engineering, agriculture and natural conservation.

After the collapse of Warsaw Pact, Russia will never enter into a binding pact of any sort, for those who are dreaming of a formal coalition defence set-up. CSTO is technically the older Russian Empire of former Russian territories so that doesn't count. SCO is an economic and homeland security structure of cooperation; despite military drills, there is just no possibility of a Russia-China joint invasion of any country at least in Asia. Also, NATO will never invade any SCO country, except maybe, Pakistan, which may be limited to low intensity conflict, usage of drones, intelligence gathering operations headed by CIA and some "security consultants" posted in American Embassy in Pakistan. Nothing more.

China buys almost 10 times the oil that we buy from any single oil supplier, just from Russia. We had only proposed a $50 billion oil deal with them while the same year, China actually signed a $400 billion deal for long-term oil supply. The permanence of government in China allows them to take such excellent decisions, versus our wonky democracy.

Unless we produce things in massive quantities that Russians need, there is seriously no way in which the Rupee-Ruble equation will work. BRICS framework can actually do it. But given the exposure Brazil and South Africa have towards western markets and US-enforced policies, there is very little we can buy from South Africans in Rand and Brazilians in Real.

Do not bring Pakistan into equation while discussing about India Russian ties...Russian are more shrewd and business minded than even China...Russia will always to try to provide some advantage to India till the situation where the profit of making business with India is less than that of Pakistan...

Russians are business-minded because they realised that the rosy-eyed view of global idealism doesn't work. It was hell on earth for their people and everything they suffered was 10 times worse than what we saw in the 90s. Lawlessness, blatant corruption, lines and lines of people waiting for basic necessities - all that in Russian weather conditions.

It took a lot of hard work and headache for Putin to bring Russia back from the brink and he will definitely not let that happen again.

Everyone needs to be business-minded; but mindful enough to address the concerns of close and reliable partners.

In a recent meeting between Indian and Chinese diplomats... similar Idea, trade settlements in local currency was discussed... I would not be amazed if we see more use of Ruble/Yuan while trading in Asia in upcoming 10 years or so...

Ruble-Yuan-Rupee trade huh? But it needs to be backed by a political framework. BRICS, SCO and EEU; all the three have some serious risk exposures which may not, how do you say, "complete the circle".

There has to be a different alternative.

US would go nuts if we started trading for Russian oil in Ruble-Rupee format. Expect a lot of covert operations and political op-eds in India's "intellectual" circles then.