Amid ongoing geopolitical tensions and fears of escalating conflict, Prime Minister Narendra Modi has pledged India’s support to Ukraine, aiming to restore bilateral trade to pre-2022 levels, before the country came under attack from Russia.
Modi, who recently visited Ukraine held a delegation-level meeting with Ukrainian President Volodymyr Zelenskyy in Kyiv. During the meeting, four MoUs were signed to bolster bilateral ties in various fields, including community development projects in Ukraine, drug control standards, cultural exchange, and agriculture.
According to a statement issued by the Prime Minister’s Office, the leaders discussed enhancement of cooperation in areas such as trade and commerce, agriculture, pharmaceuticals, defence, education, science & technology, and culture, apart from exploring a stronger partnership in domains such as digital public infrastructure, industry, manufacturing, green energy etc., including through greater involvement of business and industry from both nations.
“In the light of the significant reduction in the annual bilateral trade in goods since the year 2022 due to the challenges related to the ongoing war, the Leaders directed the Co-Chairs of the IGC to explore all possible ways to not only restore bilateral trade and economic relations to pre-conflict levels but expand and deepen them further,” it said.
India-Ukraine bilateral trade
Over the past 25 years, bilateral trade between India and Ukraine has seen substantial growth, reaching USD 3.386 billion in 2021-22. Ukraine primarily exports agricultural and metallurgical products, along with plastics and polymers, to India. In return, India’s major exports to Ukraine include pharmaceuticals, machinery, chemicals, and food products. Several Indian companies have established representative offices in Ukraine, and leading pharmaceutical firms have formed the ‘Indian Pharmaceutical Manufacturers’ Association’ in the country.
However, since the war erupted in Ukraine, the bilateral trade between India and Ukraine has significantly declined. In 2022, India exported USD 743 million to Ukraine, while the latter exported USD 1.08 billion to India.
According to Embassy of Ukraine in India, in the first half of 2024 the volume of bilateral trade amounted to USD 1.07 billion. Export of goods from Ukraine – 0.41 billion USD, import of goods from India – 0.66 billion USD. The negative trade balance for Ukraine amounted to 0.25 billion USD.
“The leaders emphasised the importance of enhancing the ease of doing business for mutual economic activities and investments, apart from removing any impediments for greater trade and commerce between India and Ukraine. The sides also encouraged greater engagement at official and business levels to explore joint projects, collaborations, and ventures,” the PMO said.
Focus on defence cooperation
Emphasizing the significance of defense cooperation between India and Ukraine, the leaders committed to strengthening ties between their defense sectors, including through joint collaborations and manufacturing partnerships in India, as well as cooperation in emerging technologies.
They also agreed to convene the 2nd meeting of the Indian-Ukrainian Joint Working Group on Military-Technical Cooperation, established under the 2012 Defense Cooperation Agreement, in India in the near future.
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