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Complementarity and Potentials of High Technology Trade, Technology and Skills Transfers between India-Russia

Pohit, Sanjib (2012): Complementarity and Potentials of High Technology Trade, Technology and Skills Transfers between India-Russia.

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Abstract

This paper examines complementarities and potentialities in merchandise trade in general and high technology trade in particular between India and Russia. In this context, we have also looked at the complementarities for bilateral transfer of investment, technology and skills. The analysis shows that bilateral trade flow is small even though trade complementarities in the segment of high technology as well as in merchandise trade in general exist. Inefficient trade logistics networks, absence of mutual recognition of standard, lack of bilateral technology and skill transfer and low level of connectivity between private sectors of either country are some of the factors responsible for not realising the potentials of trade. This is further confirmed by our illustrative CGE modelling exercise which suggest about half a percentage points increase in real GNP in either country if bilateral tariff barriers are abolished. In this context, governments of Russia and India need to play pro-active role to raise the level of economic engagement

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