1 апреля 2018 г.

ARMENIAN-INDIAN RELATIONS AND THEIR PROSPECTS. ECONOMY


Both India and Armenia are developing countries. Despite the fact that Armenia is smaller with its population, territory, trade volume, it is a country situated in a region bridging Europe and Asia. India is the 6th largest economy in the world and has serious economic aspirations not only in South Asia but in whole Asia and the world as well. In the scope of this essay the recorded achievements in bilateral economic relations will be presented and perspectives of future development will be mentioned. 

Since the establishment of diplomatic relations in 1992 dozens of documents have been signed between the sides including agreements on trade and economic cooperation, economic and technical cooperation, encouragement and protection of investments, cooperation in the field of agriculture. The establishment of Armenian-Indian Excellence Center in Information and Communication Technologies in 2010, Armenian-Indian Business Council in 2011 were important steps. Indo-Armenian Friendship NGO established in 2009 announces one of its aims is to ''strengthen socio-economic ties and trade engagement for a prosperous future with great emphasis on bilateral engagement''. 

As of 2016 India was one of Armenia's top 10 import partners and had exported products worth $70 mln. Armenia's exports to India were more modest, worth $1,5 mln. It's quite understandable why the trade is in favour of India. It has more powerful economy, much to offer and is for the most part self-sufficient. As for Armenia, it's highly dependent on foreign imports.  
Now about bilateral visits at state level. In April 2017 Indian Vice President Mohammad Hamid Ansari visited Armenian where he had meetings with the President Serzh Sargsyan, Prime Minister Karen Karapetyan and Minister of Foreign Affairs Edward Nalbandyan. Karapetyan suggested targeting two areas in economic cooperation: exchange of technologies and agriculture. It was mentioned that Indian businesses have ability to invest outside of India and they would find out new opportunities for interaction. In November 2017 Armenian President Serzh Sargsyan visited India where he participated in World Food India Conference and attended the exhibition, had meetings with the Prime Minister Narendra Modi, Vice President Venkaiah Naidu, President Ram Nath Kovind. Sargsyan congratulated India for becoming a strong power in global food market and a leading exporter in the sphere of agriculture. Days after the visit Armenian government adopted a decision according to which the citizens of India will be able to travel to Armenia with facilitated visa regime. The touristic flows had increased in the first half of 2017 compared to the same period of the previous year. The decision will make Armenia more attractive and preferable destination for Indian tourists.
An Indian Organic Shop functions in Yerevan where organic cosmetics, herbal products, teas, spices, clothes, jewelry, souvenirs and much more are sold. Taj Mahal shop of Indian products waits its costumers again in Yerevan. The first exhibition-fair of Indian products was organized here in 2005, since then the number of participants and brands presented has increased. Exhibition-fairs have also been opened in the cities of Gyumri, Aboyan, in Artsakh. 
Perspectives of bilateral economic relations at state level can be the followings:
·         enhance the agenda of Intergovernmental Commission for cooperation on trade and economy
·         promote cooperation at multilateral level (Armenia is a member of Eurasian Economic Union and has signed Preferential Trade Agreement with the EU)
·         conclude India-Eurasian Economic Union FTA (Free Trade Agreement)
·         make Meghri Free Economic Zone, bordering Iran and Meridian Jewelry Free Economic Zone effective platforms for Indian invetstments
·         regard Armenia as a transit point for shipping Indian products to Russia and European countries
·         increase the participation of businessmen in the bilateral business council
·         organize high level visits to fully discover the potential of cooperation and determine the dimensions
·         open Indian exhibition-fairs in Armenia and Indian exhibition-fairs in India to raise mutul awareness, exports and to introduce both markets
As a conclusion, we can say that much has already been done and much has to be done in the future. The willingness of both parties will be the most important basis for further cooperation.

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