Chennai-Vladivostok Shipping Route to Boost India-Russia Trade: Indian Chamber

The Chennai-Vladivostok shipping route will boost trade between India and Russia, president of Indian Chamber of International Business (ICIB), Manpreet Nagi Singh, has told Sputnik India.

“Russia as a landmass is huge. So when you talk about both ends of the country, something from Moscow to Mumbai, it takes a lot of time due to distance. The Chennai-Vladivostok corridor is very fast and free from a lot of hindrances which are on the other sides,” Singh told Sputnik India.

“Apart from this, it connects the other side of Russia to India. So, I think this side will grow faster than the western side and will augment trade between both the countries,” he added.

Singh made his remarks during a business congress titled Business opportunities for entrepreneurs from India and Saint Petersburg in current conditions that was held in Indian cities Mumbai and New Delhi on Thursday.

Some of the top dignitaries of Saint Petersburg, including Vice-Governor Vladimir Kniaginin and several businessmen, came to India and held B2B meetings with their Indian counterparts.

“The trade is touching nearly $50 billion and I am sure that it is going to become much more very soon,” the ICIB president stated.

The Chennai-Vladivostok maritime corridor

He also said that there were a lot of non-traditional areas of trade that both countries can explore.

“A lot of imports from Russia can be done in the polymer and plastic sector. Apart from this, there is a lot of scope for food products, textiles, leather products, fruits, vegetables, dry fruits like pine nuts etc. So, these are a few sectors where new collaborations can be opened up in the current scenario,” Singh stated.

The ICIB president added that India has a lot to offer in pharmaceuticals, Ayurveda and medical equipment along with supply of raw materials to Russian companies which is the API and related products.

Western Sanctions Increased Bilateral Trade Between India and Russia

Trade between both countries has witnessed an upward trend ever since Russia’s special military operation in Ukraine started and western sanctions were applied.

However, Singh feels that the Western sanctions have become a good opportunity because they have helped India to explore the new markets of Russia and the entire Commonwealth of Independent States (CIS), while Russia got new suppliers and vendors which were not in the picture before.

Speaking at the 8th Eastern Economic Forum (EEF), which took place in Vladivostok on September 14, Indian Ports and Shipping Minister Sarbananda Sonowal stated that the inauguration of the Eastern Maritime Corridor will usher in a new era of trade relations between both countries.

The memorandum of intent (MoI) to develop the Chennai-Vladivostok shipping route was signed by Indian Prime Minister Narendra Modi and President Vladimir Putin at the EEF in 2019.

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