Press Release

$1 billion line of credit to Far East will provide easy access to CIS region: TPCI

Press Release:

$1 billion line of credit to Far East will provide easy access to CIS region: TPCI

-Indian pharma companies might get a leg up

05th September 2019, New Delhi: Trade Promotion Council of India (TPCI) has expressed optimism that the $1 billion credit line announced by the Prime Minister today will go a long way to promote Indian economic presence in the CIS region. PM Modi along with Russian President Vladimir Putin is slated to address the summit as the chief guest later today. This is PM Modi’s maiden visit to the Russian Far East region.

Speaking on the announcement Mohit Singla, Chairman TPCI said, “India’s offer of $1 billion credit line to far east is a great move. Our effort to enter the CIS market had always been a daunting challenge owing to the various counter factors such as expensive freights and poor market access. It will also enthuse India exporters as they would get market access and working experience to Indian suppliers in Russian projects. Also the goods and services of Indian companies will be able to explore opportunities offered by not just Russia but, custom market of CIS region” The Indian companies can now set up a manufacturing cluster, wherein they can use imported and local resources of Russia and sell their products, which had been lying uncompetitive since long, he added.

Chairman TPCI further said, “The Indian prowess and acceptability of the pharma companies may get a leg up as this is the second serious efforts by India after establishment of Chabahar Port, to enter in the CIS region”

India’s exports to CIS countries were US$ 3385.5 million in 2018 while imports were US$ 10,593.04 million. The biggest export destination amongst the CIS nations for India is Russia with total exports to Russia in 2018 being US$ 2331.4 million, followed by Ukraine where Indian exports were of value US$ 400 million.  Major items of exports to CIS nations are pharmaceuticals, electrical equipment and machinery, organic chemicals, tea, etc. The average applied tariffs in CIS countries– with the highest average in Uzbekistan of 13.7% (2017), followed by Azerbaijan – 8.5% (2015), Russia – 5.1% (2017), Kyrgyz republic – 4.1% (2017), etc.

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