Second India-Russia Strategic Economic Dialogue Report Analysis

Second India-Russia Strategic Economic Dialogue Report Analysis

The Second India-Russia Strategic Economic Dialogue was held in Delhi on 10th July 2019, under the chairmanship of Dr. Rajiv Kumar, Vice-Chairman, National Institution for Transforming India (NITI) Aayog and Mr. Timur Maksimov, Deputy Minister of the Economic Development of the Russian Federation.

The Second meeting of the IRSED focussed on six core areas of cooperation, namely, 

• Development of Transport Infrastructure and Technologies.
• Development of Agriculture and Agro-Processing sector.
• Small and Medium Business Support.
• Digital Transformation and Frontier Technologies. 
• Cooperation in Trade, Banking, Finance, and Industry. 
• Tourism & Connectivity.

Dr. Rajiv Kumar on the Second India-Russia Strategic Economic Dialogue

The IRSED comes at an opportune moment as India embarks upon ensuring the fruits of development devolve to the grassroots, as every citizen of the country becomes part of the growth & development process, as evidenced by a forward-looking Union Budget. Increased investment and international cooperation are key

Mr. Timur Maksimov on the Second India-Russia Strategic Economic Dialogue

The results of today's discussions will help enhance strategic economic cooperation between our countries. We must discuss and prepare specific proposals for joint action in the future and establish economic relations which reflect the potential of cooperation between the two countries

The Dialogue included parallel roundtables that discussed areas of cooperation and concrete roadmaps for future negotiations across outlined core areas. Participants included government officials, business leaders, and experts, bringing in diverse perspectives for ideation. 

Discussion on Digital Transformation and Frontier Technologies

The roundtable on Digital transformation and Frontier Transformation focussed on areas of collaboration between India and Russia in the digital space and frontier technologies. Various platforms developed by Russia and how these can be leveraged by India, and vice versa, and potential for future collaborations were discussed across various sectors such as payments platform, joint startup ecosystem, use of digital technology in various areas such as education, construction, and skilling.

Discussion on Transportation

Development of Transport Infrastructure and Technologies roundtable discussed areas of cooperation across various modes of transport such as speed up-gradation, safety and passenger comfort in railways, creation of twin ports between India and Russia, shipbuilding and river navigation, research and development, and ensuring predictability of cost and movement schedules across transport corridors.

Discussion on Small and Medium Business Support

For increasing collaboration and cooperation between Small and Medium Businesses in India and Russia, the roundtable recommended setting up of nodal points of interaction between the two countries. Ensuring access to finance, seamless digital banking, access to E-markets and broad-based engagement across sectors were also discussed.

Discussion on Development of Agriculture and Agro-Processing sector

The roundtable on Agriculture and Agro-processing noted the dynamic nature of agriculture, livestock rearing and food processing in both countries and the immense opportunities of cooperation. Recommendations included closer communication between the respective agriculture ministries to streamline collaborative efforts. Reciprocity in terms of acceptance of certification, deployment of AI-backed frontline technologies and software were also under discussion.

Discussion on Tourism & Connectivity

The roundtable on Tourism and Connectivity highlighted the need to increase bilateral tourism and exploring natural avenues for economic and commercial partnerships. Expanding visitor itineraries for both countries, and creating more products for tourist interest such as yoga and medical tourism were also considered. Working towards improving regional connectivity and improving government and industry cooperation was also discussed.

Discussion on Cooperation in Trade, Banking, Finance, and Industry

The roundtable on Industrial Trade and Cooperation saw participation across industries in energy, finance, and industries, which emphasized awareness exchange between the two countries in areas of investment opportunities. Exploring better Business-to-Business communication and collaboration, generating greater investment flows through public and private cooperation in an organized way were also discussed.

First India-Russia Strategic Economic Dialogue 

The First India-Russia Strategic Economic Dialogue was held in St. Petersburg between November 25-26, 2018, and was chaired by Mr. Maxim Oreshkin, Minister of Economic Development of the Russian Federation, and Dr. Rajiv Kumar, Vice-Chairman, NITI Aayog

Formation of India-Russian Strategic Economic Dialogue

The IRSED was established following a bilateral Memorandum of Understanding (MoU) signed between NITI Aayog and the Ministry of Economic Development of the Russian Federation during the 19th edition of the Annual India-Russia Bilateral Summit, which was held on October 5, 2018, in New Delhi.

Aim of India-Russia Strategic Economic Dialogue

It was created by PM Narendra Modi and President Vladimir Putin in their informal summit (held at Sochi in May 2018) to give a big push to the economic partnership between both countries that has started to gain momentum since 2017. It aims to focus on the macro picture of economic partnership and also explore partnership and joint ventures in the services and IT sectors. It seeks to put in place a mechanism for partnership between resource-rich Russian regions and Indian states. To boost bilateral trade to $30 billion by 2025, both countries have agreed to give high priority to the removal of obstacles to trade to improve upon 21.5% growth in two-way trade recorded last year.