FOCUS: CIS TO ENHANCE INDIA’S TRADE
The "Focus: CIS"
Programme launched by the government will significantly enhance
India’s trade with countries of the CIS (Commonwealth of Independent
States) region. The Programme launched with effect from April
1, 2003 focusses on countries of the CIS region, with emphasis
in the first phase on seven countries, namely, Kazakhstan, Kyrgyzstan,
Uzbekistan, Turkmenistan, Tajikistan, Azerbaijan and Ukraine.
The main objective of the Programme is to increase mutual direct
interactions among businessmen by identifying the areas of bilateral
interest and investment. Shri Arun Jaitley, Union Minister of
Commerce & Industry and Law & Justice, had announced this
while unveiling this year’s EXIM Policy (2003-04).
The CIS region offers
tremendous potential for bilateral trade and investment. India’s
total trade with these countries was US $ 1705.27 million ($ 1.7
billion) during the year 2001-02 with exports accounting for US
$ 967.63 million and imports worth US $ 737.64 million. The emerging
markets of this region display all the portents of being the new
markets of the future because of liberalised economies and streamlining
of banking operations. Also the industrial units of Soviet era
in countries of the CIS region now need upgradation/modernisation
and are looking for foreign investment. Under the trade facilitation
programme in the countries of CIS region, European Bank for Reconstruction
and Development (EBRD) provides guarantee facility to Exim Bank
to cover Letters of Credit (L/Cs) received by Indian exporters
from pre-approved banks. World Bank and other international organisations
are making available funds for revitalising the economy of this
region under various schemes. All these opportunities provide
great scope for bilateral cooperation between India and the CIS
region.
The Programme envisages
increasing India’s exports to the CIS region through integrated
efforts of Government of India and various agencies like India
Trade Promotion Organisation (ITPO), Export Promotion Councils
(EPCs), Apex Chambers of Commerce & Industry, Indian Missions
and institutions such as EXIM Bank, Export Credit Guarantee Corporation
(ECGC) etc.
