Govt prods Russia to ease trade barriers
NEW DELHI: Govt is pushing Russia to lower barriers for export of Indian electronics, engineering goods, food products and fisheries as part of its efforts to get Moscow to use the $50-55 billion equivalent of roubles lying in bank accounts due to the oil-induced trade balance. For electronics, software is a major issue with Russian authorities, while strict standards for engineering goods are holding up Indian shipments. For some goods, local language requirements are also proving to be an issue. “Our goods have to contend with some Russian standards and some Eurasian standards, which makes it tough to export,” said a person privy to the discussions. The issue has been taken up at the highest level given that India runs a massive trade deficit, estimated at close to $25 billion in the first seven months of the current fiscal year due to large crude oil imports from Russia.
Eyeing to reduce deficit
With some of the Russian oil companies facing US sanctions and Indian refiners cutting supplies, the trade deficit is expected to narrow, although some newer entities have stepped in to make up for the gap. Facing sanctions, Indian oil companies have been paying in roubles and other currencies for the oil with large amounts lying in bank accounts where the trade was in the Russian currency. In contrast, Indian businesses have found it hard to ship goods despite Russian chains showing interest in buying food and other items. “We have taken up the issue of strict standards with Russian officials at the highest level and there is appreciation to resolve it,” said an official, ahead of talks for a trade deal with the Eurasian Economic Union comprising Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan next month.
