Amid drying supplies, is seeking automobiles and farm goods from India. However, exporters have demanded a fixed rupee-rouble exchange rate to help them reduce costs and also push trade in Indian currency.
Moscow has been seeking to import goods from India since sanctions were imposed by the West following its attack on Ukraine. But some of the Indian companies and banks have been reluctant to deal with Russian entities fearing adverse action. However, there is a greater sense of urgency in Moscow now. This is because consumers are finding it difficult to source spare parts for their vehicles as several carmakers have wound up their operations in the wake of the sanctions.
Sources said there is a demand that Indian auto component players as well as car companies enter Russia. While auto parts exports look possible, the Indian automobile industry, which has several global players, is unlikely to agree to ship vehicles. Even home-grown players such as Tata Motors and Mahindra & Mahindra have international operations, with the former owning the marquee Jaguar and Land Rover brands.
A team of exporters, which is currently in Russia, has held discussions on supplying soya and several other agricultural products as Moscow seeks to beef up supplies. “Shelves in supermarkets are going empty and even in the duty-free shop (at the airport) there is not much beyond Russian vodka,” said an exporter, who has just returned to India. While there have been demands in the past too, the deals haven’t materialised.
Exporters said a rupee rouble trade will help them as they currently lose around 4% in every transaction. They have suggested to commerce department the rate could be notified by the RBI every fortnight.
