India, Russia Target $20 Billion in Trade; Sensex Surges 0.9%

Chandrasekhar Atreya
21 Dec, 2010
New York City

India and Russia expanded trade relations and increased defense, space and energy and power sectors cooperation. The two nations targeted $20 billion in bilateral trade in five years. Stocks in Mumbai surged tracking gains in Asia.

India, Russia Target $20 Billion in Trade; Sensex Surges 0.9%

[R]5:00 PM Mumbai, 8:30 AM New York – India and Russia expanded trade relations and increased defense, space and energy and power sectors cooperation. The two nations targeted $20 billion in bilateral trade in five years. Stocks in Mumbai surged tracking gains in Asia.[/R]

Mumbai stocks gained nearly 0.9% tracking the gains in the Asian markets and world indexes in overnight trading.

The Sensex in Mumbai added 0.86% or 170.98 points to close at 20,059.86 with 20 of its 30 components closed higher. The CNX Nifty on the National Stock Exchange added 50 points to close at 5,997.05.

The rupee closed down 33 paisa at Rs 46.24 in Mumbai today.

India and Russia agreed today to jointly develop fifth generation fighter aircraft and also signed a deal to expand existing capacity at an Indian nuclear power plant.

The two-day visit by Russian President Dmitry Medvedev capped the string of international deal making by India. UK, U.S., France, China and EU have sought expanded ties with the second fastest growing economy in the world.

A joint statement between India and Russia said that two nations are looking to expand defense, space, nuclear power and energy sector cooperation. Two nations would work on a design project for the fighters and had agreed to expand capacity at a nuclear power plant in Tamil Nadu by building the third and fourth generation units. The two nations will also work to build another nuclear plant in Orissa.

India and Russia set a target of more than quadrupling the bilateral trade to $20 billion in five years. The two nations also expanded the scope of cooperation to sectors such as pharmaceuticals, energy, IT & communication, chemicals & fertilizers and banking & finance.

The Indian government will prevent telcos from offering non-voice 3G mobile services in seven days, unless they demonstrate that these facilities can be tapped live, a senior department of telecom official told ET.

The 3G data services that could be affected include high-speed access to Internet, downloading of music and video clips, chat and internet telephony.

A Lack of toilets and hygiene costs India more than $50 billion a year, mostly through premature deaths and hygiene-related diseases, according to a study by the World Bank.

The study conducted by Water and Sanitation Program of the World Bank said that the nation’s gross domestic product is cut by 6.4% because of the loss of productivity and lack of sewage treatment and fouled water.

Ispat Industries shares plunged as much as 17% in early trade after JSW Steel announced that it will take a majority stake in the company through the purchase of shares worth Rs 2,157 crore or $520 million.

“The company will subscribe to 108 crore shares of Ispat by way of preferential allotment at a price of Rs 19.85 per share,” JSW said in a BSE filing on Monday.

Seafood exports from India rose 3.8% from a year ago during April to October to reach 370,737 tons, with more exports of higher-value items like shrimp.

The increase was 15.4% in rupee terms and 21.53% in dollar terms in this period. Higher demand for shrimps to the U.S. and Japan and better exports of squid to the EU markets, were the main contributors to the increase.

India’s 12th five-year plan by the Planning Commission is likely to set ambitious targets for both economic growth and infrastructure development.

The revised plan is expected to lift the growth target to 10% from the 8.1% in the current five-year plan as the world economies recover from the global meltdown that originated in the U.S.