Due to the Russia – Ukraine war and subsequent imposition of several sanctions on Russia by different Countries has opened gates for the export opportunities for a large number of Indian products, as the demand of Indian goods has tremendously increased in Russia. Earlier Russia was importing a large number of FMCG and consumable goods from USA, UK and European Countries which has now stopped because of the sanctions on Russia.
This situations is best called as blessings in disguise for Indian manufacturers and traders to fill the void with Indian goods and therefore several credible trade organisations of Russia have reached out to the Confederation of All India Traders (CAIT) seeking its assistance to link the Russian demand with Indian manufacturers, traders and merchant exporters for Indian goods and on the other hand realizing the best opportunity, the Indian merchants have shown great interest in exporting goods to Russia.
CAIT National President BC Bhartia and Secretary General Praveen Khandelwal said that the demand for Indian products has increased very fast in Russia and in the first phase, products like various types of fruit jams and jelly, cornflakes, mussili, porridge, Oat flakes, different types of tea, coffee powder, Premixes tea and coffee, sugar, salt and pepper sachets & blisters, milk powder, fruit, vegetable, instant mix pancake, cheese, pasta, fusilli and macaroni, butter, sour cream, fruit drinks, fermented curd, Soup Goods, Spices, Honey, Biscuit, Pickles, Frozen Snacks, Food Grains, Ketchup, Ready to eat Food, Bread, Rice, Beans, Pulses, Whole spice, Cornflour Powder, Purees, Soup Sticks, Potato Chips and Wafers, etc. are required on priority basis in different packings.
The bilateral trade between India and Russia in April 2020 to March 2021 was of $ 8.1 billion dollars out of which exports from India to Russia were $ 2.6 billion, while imports from Russia were $ 5.48 billion. From the present opportunity, we can rapidly increase the export figures from India to Russia – said both trade leaders. Major items of export from India to Russia are pharmaceuticals, telecom instruments, iron and steel, tea and chemicals, while imports include petroleum, pearl and semi-precious stones, coal, fertilisers and vegetable oils.
Bhartia and Khandelwal said that according to the information received, Russia has specially authorized some of its selected banks to pay for the goods imported into Russia and all the goods will be paid in the Russian currency ruble in the place of dollars. This is the best opportunity for Indian products to enter the Russian market. CAIT will act as a facilitator between Indian manufacturers and traders and Russian traders in this matter.
Bhartia & Khandelwal said that according to the information received, Russia and India have completed their program on a payment platform like SWIFT. This new payment system will be installed at the headquarters of Reserve Bank of India and Russia’s VEB which is the development corporation Bank of Russia. This new payment system is likely to be started in the next one week to ten days time, after which the documents of import and export will be settled in rupees and rubles.
Bhartia and Khandelwal said in this context, CAIT has urged its chapters in all the States of the country to work on the first list received from Russia so that more and more Indian manufacturers and traders can take advantage of this opportunity and export their goods to Russia in substantial quantities. They further added that CAIT has also informed its contacts in Russia to explore the possibilities of other products of India like footwear, toys, readymade garments, clothes, other food grains, builder hardware, paper and stationery, computer and computer accessories, glasses, bicycles & bicycle Parts, auto parts etc. may also have substantial demand in Russia . However, Indian traders are fully geared up to meet the demand of Russia.
