Vikrant Shekhawat : Sep 03, 2024, 09:43 AM
India-Russia Relation: Trade between India and Russia is booming and bilateral payments are running smoothly. Anatoly Popov, deputy CEO of Sberbank, confirmed on Tuesday that 70% of Russia's exports to India are being paid through Sberbank. He pointed out that Russia's trade with India is set to almost double to $65 billion in 2023, which was made possible due to India becoming a major Russian oil importer after Western sanctions.Sberbank's activities in IndiaPopov noted that the interest of Russian businesses in the Indian market has increased in 2022, with India emerging as an important option. Sberbank has offices in Delhi and Mumbai in India, as well as an IT center in Bangalore. This year, the number of Sberbank employees in India has increased by 150%, and there are plans to hire 300 IT personnel in Bangalore.Impact of Western sanctionsSberbank, which is subject to Western sanctions, cannot transact in US dollars and euros and cannot use the SWIFT system. Nevertheless, Popov said the bank has not faced any problems in Indian payment and inter-bank systems. India has distanced itself from anti-Russian sanctions and maintains friendly relations with Russia as a member of the BRICS group.Ruble-rupee transactionsSberbank has said that transactions in rubles and rupees are being conducted smoothly, with 90% of transactions being completed within a few hours. Popov also said that rising Indian exports to Russia have helped solve the problem of rupee surplus. However, for balanced trade, India needs to increase its exports to Russia by 10 times.Thus, there is a positive sign of increasing business cooperation and economic relations between India and Russia, which can prove beneficial for both countries.