Interactive Meeting with H E Mr A D Zhukov , Hon'ble Dy Prime Minister of the Russian Federation
November 19, 2004, New Delhi

Welcome Address by Mr Yogendra K Modi, President, FICCI

H E Mr A D Zhukov, Hon'ble Deputy Prime Minister of the Russian Federation,
H E Mr Vyacheslav Ivanovich Trubnikov, Russian Ambassador in India,
Mr Kanwal Sibal, Indian Ambassador to Russia,
Mr A Stroev, Co-Chairman, Russian Federation-India JBC,
Mr Nand Khemka, Chairman, India-Russian Federation JBC,
Mr Surjit Singh, Chairman, Shreya Life Sciences

Distinguished delegates from Russia and India,

Welcome

It is my privilege to welcome all of you this morning on behalf of the Federation of Indian Chambers of Commerce and industry. We are honoured and delighted to have amidst us H E Mr Zhukov, Hon'ble Deputy Prime Minister of the Russian Federation.

Indo-Russian Bilateral relations

India, with a large pool of excellent human resources and a favourable demographic profile and Russia with its scientific and technological excellence have both made tremendous progress in recent years in occupying their rightful places in the global economy. Our advances in the knowledge-based industries have transformed our economic landscapes and developed new capabilities and synergies.

On the bilateral front, one of the prime aims today is to intensify our economic and trade cooperation. This can only be achieved with a firm resolve to tap the unlimited potential. I would like to highlight some of the areas identified by FICCI.

Information Technology

Today India's strength and competency in IT are acknowledged worldwide. Our annual exports of IT enabled services are nearly US $ 10 billion, with a large proportion going to Europe and America. At the same time, Russia has developed a large and sophisticated IT market. However, despite this we have not been able to mutually benefit. We have observed that Russia imports most of these products and services from Europe, which could be sourced from India at much lower cost.

Infrastructure

With our ambitious projects of building and upgrading about 15,000 km of highways that would link our major metros as well as rural areas, Russia could participate in this program.
In Energy sector, Russia could also help in our huge program to add almost 100,000 MW additional power generating capacity.

Small and Medium Enterprises

In India, this sector has contributed significantly to employment, development and exports. While SMEs are the 2nd largest employers in India, Russian SMEs currently offer only 10% of it's employment base, revealing tremendous potential for collaborations. We have noted that now Russia is also devoting attention to the development of SMEs. In fact, taking inspiration from our Prime Minister's visit last year and the immense importance given to SMEs, FICCI signed an MoU with the Russian Public Organisation of Small and Medium Size Enterprises to explore synergies in this vital sector.

Tourism

It is noteworthy that 8 million Russians travelled overseas last year and similarly over 5 million Indians travelled abroad. (Perhaps only a small fraction travelled between our two countires) Tourism is yet another important sector for joint focus.

• FICCI and Russia
  
  We propose that FICCI in India and the Russian federation of Chambers of Commerce and Industry (RFCCI), represented by Mr Stroev, who is amidst us today, should produce and implement a well researched and pragmatic business plan to achieve a trade turn over of $5 billion within the next three years up from the present level of around $1.3 billion. In addition to the sectors mentioned by me, the plan should focus on oil and gas, drugs and pharmaceuticals, metals and minerals, fertilisers, agricultural commodities and processed foods, textiles and garments as well as Knowledge driven sectors like Biotechnology, Nanotechnology and Entertainment.
  
  
• Concern
  
  We strongly believe that it is in the hands of the business community from both sides to take initiatives in propelling the trade and investment growth. However may I urge you to seriously look at easing the visa regime particularly allowing multiple entry visa for our businessmen. This at times becomes a serious constraint for our enterprising business community.

I am certain that todays meeting and the forthcoming meeting with President Putin will go a long way in providing the right impetus to the growth of our bilateral economic relations.

Thank you. (SPASIBA)