Development of trade relations between Russia and India

Development of trade relations is one of the priority areas in international cooperation. It promotes the exchange of practical experience and accumulated knowledge between nations, which is beneficial to the development of innovation capacity and scientific progress. Assessment and knowledge of countries’ capacity in the international arena helps establish profitable trade relations between them, contributes to the timely adoption of competent management decisions and optimizes domestic policy. Such relationship has developed between the Russian Federation and the Republic of India. According to the statement of Russian President Vladimir Putin published in December 2012 in the Indian newspaper “the Hindu”, the deepening of friendship and cooperation with India is one of the priority directions of Russia’s policy. This article describes and analyzes the main economic indicators of the two countries: the volume of gross domestic product, the ratio of GDP to population, the structure of gross value added, goods turnover, services, the total value of exports and imports, the structure of exported and imported products. The author concludes that economic development in Russia and India is in many respects similar and depends on each other. Nevertheless, in recent years, it is possible to note a slowdown in the development of relations between the Russian Federation and the Republic of India. The further development of partnership between these countries requires a better elaborated cooperation concept that would take into consideration cultural specifics, resources of the two countries, and political interests emerging in the international arena. It is also necessary to consider the regional aspect. Thus, it is necessary to analyze foreign economic activity of Russian regions and to find out which of them are better suited for further development of trade relations. This assessment will also help develop competent solutions in the policy of import substitution for those commodity groups that are necessary for Russia.