Indian, Russian companies ink lucrative deals, target $20 bn trade

NEW DELHI - Indian and Russian companies Monday signed a clutch of deals worth over $1 billion in diverse areas ranging from pharmaceuticals to IT and telecom as the two sides resolved to scale up bilateral trade to $20 billion by 2015.

The deals were signed at the end of a day-long India-Russia forum on trade and investment that was organized on the eve of Russian President Dmitry Medvedev’s two-day visit to India that begins early Tuesday morning and will include talks with Prime Minister Manmohan Singh.

The deals are estimated to be over at least $1 billion and their value could go many times in the long run, said an official.

The pharmaceutical sector saw three deals that included a memorandum of understanding between JSC Pharmasyntez and Naprod Life Science Private Ltd for joint production of modern oncological medicine in Russia, an a agreement on scientific and technical co-operation between JSC Arkihin and Biopharm, and a pact between JSC R-Pharm and Dr. Reddys Laboratories Ltd.

An MoU between Russia’s JSC Sitronics and Shyam Telecom on joint promotion of their products in various markets was also inked. An agreement between Pereslavskji Technopark and Asia Pacific Institute of Technology was also signed.

Speaking at the trade forum, Russian Deputy Prime Minister Sergei Ivanov made a strong pitch for enhancing the economic content of the time-tested India-Russia partnership and asked businesses of the two sides to step up their efforts to achieve $20 billion trade by 2015.

Ivanov underlined that nuclear energy is becoming an increasing important area of bilateral cooperation and announced that Russia will be building two more reactors at Kudankulam in Tamil Nadu.

The two countries should develop and expand the economic relationship that will increase the prosperity of the people of both sides, Ivanov said.

He also vigorously reiterated his country’s support for India’s bid for a permanent seat in the UN Security Council.

We are confident that India will become a permanent member of the UN Security Council, Ivanov said.

We supported India for the UN seat years ago. We haven’t changed our position, Ivanov said.

“Let us work together for a renewed thrust on bilateral trade and investment. The target of $20 billion trade by 2015 is achievable, provided all stakeholders put in concerted high efforts,” Commerce and Industry Minister Anand Sharma said while addressing the forum.

He emphasised the need to expand the trade basket to include value added items in areas of applied technologies, information technology, telecommunications, automobile components, gems and jewellery, and energy.

India and Russia are set to sign around 15 agreements, including key pacts on jointly producing a multi-billion dollar jet fighter and Moscow’s plans to build more nuclear reactors in India after the leaders of the two sides hold talks here Tuesday.

Manmohan Singh and Medvedev will discuss a wide range of bilateral and international issues, including the expansion of civil nuclear cooperation, the intensification of bilateral economic ties, global terrorism and the international financial crisis.

The Russian leader will go to Agra and Mumbai Wednesday. In Mumbai, Medvedev will stay at The Taj Mahal Palace and Tower Hotel, one of the main targets of Nov 26-29, 2008 terror attack, and pay homage to victims of the carnage. He will also go to Film City, where he will interact with Bollywood stars.