Date:11/02/2008 URL: http://www.thehindubusinessline.com/2008/02/11/stories/2008021151220300.htm

Back Remove hurdles from India-Russia trade: FICCI

Our Bureau

New Delhi, Feb 10 India-Russia trade can cross the targeted $10 billion by 2010 and further increase to $20 billion by 2015, if issues related to credit risk, high ECGC coverage cost, insurance cover, Russian ban on farm items import, registration time for pharma products and investments safeguards are addressed, said a FICCI Survey on obstacles to trade with Russia.

On the eve of the visit of the Russian Premier to India, the chamber has expressed concern regarding the challenges that Indian exporters face in the absence of letters of credit.

“In such cases, Russian importers are asked to pay an advance payment upfront with the remaining amount being paid after the execution of the export order.

“In the past, Indian exporters have faced problems in receiving the balance payments from their Russian counterparts,” noted FICCI.

The chamber has suggested that the Government should encourage Indian banks to negotiate with the Russian banks on developing a coherent system involving Letter of Credit.

It has also sought credit reports for companies from the banks on behalf of which they conduct transactions.

For the domestic pharma industry, FICCI has also asked for lesser time for registration of generic pharmaceutical products of Indian companies which takes longer time in Russia.