India resumes non-sanctioned exports like tea, rice, medicines to Russia amid Ukraine war

As Russia continues to reel under West-led sanctions, India has resumed exports of non-sanctioned items with a shipment sent out last week. This comes after Moscow reached out to New Delhi for food and pharma imports following the withdrawal of companies from the Russian market in the wake of hefty penalties since the inception of the Russian offensive in Ukraine in late February. According to media reports, noting the depleting supply of essential items, Russia has also been eyeing deals and agreements with Indian companies for imports, including groceries.

According to people close to the matter, the container shipped last week delivered tea, rice, fruits, confectionery, marine products, and coffee to Russia. The vessels carrying out supplies also include medical equipment, the Federation of Indian Export Organisation (FIEO), India's top trade organisation said. Some shipping lines have started sailing to routes through Georgia, said Ajay Sahai, Director-General of FIEO. He added the number of exports has been very low compared to what happened earlier and Commonwealth of Independent States (CIS) nations.

While Moscow has not been slapped with sanctions on the import of medical items, logistics, and payment channels could remain an issue owing to Russia's ouster from the SWIFT global banking services. However, banks led by Russia's Sberbank are ensuring bilateral trade payments due to the presence in India, Sahai informed. He added that Russian entities with representatives in Turkey are also enabling exporters' payment in Euro.

As the trade resumed under the Rupee-Ruble route, India has shipped at least 60 containers of basmati rice to Russia, said one of India's leading exporters. Additionally, five containers of tea have also been dispatched to the country. The developments come after a nearly two- months-long hiatus in bilateral trade between India and Moscow since Russian President Vladimir Putin unleashed an offensive on Ukraine.

India's GDP growth falls by 0.8% amid the Ukraine war

The colossal war in Ukraine waged by Russia has faltered the growth of the world's largest economies, including India's. According to International Monetary Fund (IMF) prediction, the global economic growth forecast for 2022 stopped at 3.6% compared to 6.1% in 2021. IMF projected India's GDP growth at 8.2% which is 0.8% lower against the forecast in January. Despite the notable downgrade, India will still remain the fastest-growing economy, IMF World Economic Outlook for April 2022 said.

(Image: AP/Unsplash)