An India-Ukraine Chamber of Commerce will be set up in the coming months in an effort to boost business ties, according to persons aware of the matter. With the support of the Ukrainian government, the Chamber will aim to boost possibilities for investment and collaboration in sectors like infrastructure and power.
The development follows a visit to India by Emine Dzhaparova, Ukraine’s first deputy foreign minister. During the visit. Dzhaparova suggested that Indian infrastructure firms participate in the reconstruction of Ukraine, which is in war with Russia. In the absence of a chamber of commerce, the private sectors in both countries were unable to connect and explore opportunities.
According to persons aware of the matter, efforts are underway to establish such a body within the next few months.
According to the Ukrainian Embassy in India, bilateral trade between India and Ukraine amounted to $3.45 billion in 2021.
While Ukraine exported $2.49 billion in vegetable oils and fertilizers to India, it imported goods from India worth $961.2 million.
Its main imports were pharmaceutical products and electrical machinery.
“A number of Indian companies like Ranbaxy, Dr.Reddy’s Laboratories, Sun Group have their representative offices in Ukraine,” according to the Ministry of External Affairs.
Over the last two decades, India and Ukraine have signed a slew of agreements pertaining to investment promotion, standardization, merchant shipping and science and technology among other fields.
However, Ukraine’s economy has suffered a severe contraction since its war with Russia began in February 2022. According to various estimates, Ukraine’s economy has shrunk by anywhere from a third to half of its prewar size. Its year-long conflict with Moscow, the decimation of key industrial regions and incessant attacks on its power infrastructure have crippled Ukraine’s economy.
An estimate by the World Bank, the European Commission and Ukrainian authorities concluded that Kyiv would need close to USD 349 billion to reconstruct its economy. Other estimates, included by senior Ukrainian officials, have been substantially higher.
India has taken steps to back Ukraine through multiple shipments of humanitarian relief and emergency medical equipment. During Deputy Foreign Minister Emine Dzhaparova’s recent visit to India, New Delhi also committed to providing school buses to Ukraine. Economics and trade were also a part of discussions during Minister Dzhaparova’s visit. Kyiv also requested an additional supply of humanitarian aid and emergency relief from India.
Source: The Mint
