India, Russia to explore oil and gas; aim for $30 bn trade

The leaders have encouraged Indian and Russian companies to pursue greater participation in each other's power generation projects, as also in supply of equipment, technology for enhanced oil recoveries and extraction of coal, including coking coal.

Recognising the enormous untapped potential in bilateral trade, investment and economic cooperation, the two leaders encouraged businesses to explore opportunities arising from increasing national focus on infrastructure development and expanding the manufacturing sector.

It is expected that Russian companies will utilize the opportunities in a wide range of Indian sectors and will 'Make in India', it said.

The two sides agreed to step up efforts for enhancing bilateral trade in goods and services and set a target of USD 30 billion by 2025, it said adding "it is expected that the level of mutual investments by then will be over USD 15 billion each way."

It also said that an emphasis will be laid on promoting Russian investments in India in major infrastructure projects like DMIC, smart cities and freight corridors, telecom, power and roads.

"In Russia, Indian participation in Industrial Parks and technology platforms, in sectors like pharmaceuticals, fertilizers, coal and energy will be encouraged," it said, adding that the two sides would encourage specialized investment funds to invest in these sectors and in the joint manufacturing of high technology products.

"In this context, they welcome the initiative of a direct investment fund of USD 2 billion between Rosnano and suitable Indian investment partners for implementation of high-tech projects. They will protect the legitimate interests of investing companies," it added.

In particular, it said, both the sides will enter into discussions to renegotiate the existing bilateral agreement for protection and promotion of investments, initially agreed on 23 December 1994, to provide for the protection of foreign investments in each other's territory.

The two leaders will encourage payments in national currencies for bilateral trade. "The Working Group established for this purpose will make recommendations on eliminating the existing barriers and stimulating transactions in national currencies," the joint statement said.

The leaders agreed that the initiative launched by India and the Eurasian Economic Commission for a Joint Study Group (JSG) to explore the feasibility of a comprehensive economic cooperation agreement covering trade in goods, services, investment cooperation, movement of natural persons and mutual recognition of standards, is of great importance for bilateral economic cooperation.

"The Russian side will support the productive work of the JSG so that this Group completes its study within an optimal timeframe," it said adding "the leaders noted that the International North-South Transport Corridor can vastly improve the efficiency of bilateral trade by significantly reducing transit time and freight costs".

India and Russia would work together to conclude the necessary multilateral arrangements and outreach to step up the use of this corridor at the earliest.

The leaders also noted that the governments of the two countries and their industry representatives should join hands to disseminate information about business opportunities in each other's countries.

"The sides also agreed on mutual trade facilitation measures, particularly with regards to simplified customs procedures. In this context, they agreed to finalize shortly a protocol on a "Green Corridor" project," it said.