Though war between two countries is unfortunate and must be stopped at earliest. However, the current war between Russia and Ukraine has given a vast space for Indian products to make their impressive entry in the Russian market and replace the void created by stoppage of supplies from UK, USA and European Union Countries.
Before the war, the USA, European Union, UK and other Western Countries were exporting their goods in large quantities to Russia. Post levy of sanctions by all these Countries against Russia has resulted in a stoppage of supply of large numbers of goods to Russia from these Countries and therefore under the current situation , Russian trading houses are now prefered India as a destination for sourcing various verticals of goods which has brought a big opportunity for Indian small manufacturers and traders to export-said the Confederation of All India Traders (CAIT) who has been approached by several Russian Trading Houses for assisting in locating the suppliers.
CAIT National President B.C.Bhartia and Secretary General Praveen Khandelwal said that CAIT through its State Chapters has identified various small manufacturers, distributors and traders who are capable of meeting the Russian requirements as per the first list received by CAIT from Russia. “The response is enthusiastic and encouraging and manufacturing units and traders are more willing to supply the goods to Russia. The details of the requirements, its logistics, payments and other issues are being discussed and it is hoped that very soon the structure will be worked out. We see a considerable boost of exports of Indian products to Russia-said both the trade leaders. The CAIT has convened a day long conference of trade leaders of the Country on 4th May at New Delhi to discuss these issues besides holding discussion on future strategy on simplification of GST, e-commerce policy etc.
Bhartia and Khandelwal said that considering the current scenario, Russia can be a big market for Indian exports. Trade verticals like FMCG products, Consumer durables, packed food items, Dairy products, Vegan food items, Readymade garments, Footwear, Toys, Textiles, auto spare parts both for two wheeler and four wheelers, Automobile accessories, Lubricant Oils, Motor Oils, Builders Hardware, Tools, Machinery products, Computers and its peripherals, Computer Stationery, other Stationary items, Paper and various other items could be the most favoured items of exports to Russia. However, instead of big brands, small emerging brands in India can play a major role for supplying quality goods at most competitive prices.
Bhartia & Khandelwal further said that due to sanctions on Russia, obviously the transactions in Rupee-Ruble is a better option in place of dollars. It has been learnt that both Russia and Indian Governments have agreed to set up a payment mechanism between two countries on the pattern of Swift. It will certainly bring ease of doing business between two countries.
CAIT Vice Chairman Brij Mohan Agarwal and National Secretary Sumit Agarwal said that two types of strategy short term and long term needs to be adopted for trade between India and Russia. Under the short term policy, the items of immediate need should be given preference and for permanent basis other items that can have a good market in Russia could be identified for supply of Indian products to Russia. Short term is very necessary because in absence of any more supplies for daily use items, consumables, food items etc. might have a shortage in near future and therefore those items need to be expedited immediately. Russia should also consider supplying crude oil to India at a discounted price though it is for both the Governments to decide.