New Delhi: A report on `deepening India-Russia trade relations' released by industry association CII ahead of Russian President Vladimir Putin's India visit later this month, has pointed out that the proposed comprehensive economic cooperation agreement (CECA) between the two countries will work only if a viable and shorter route for trade is worked out soon.
"The greatest hindrance to trade between India and Russia is the lack of trade routes and the North-South Corridor needs greater attention from both countries the report said.
The agreement on India-Russia transport corridor may help in reducing transport costs, the study added pointing out that the present route, which passes through the Suez Canal and enters into the Russian port of St. Petersburg via Kotka (Finland) and Rotterdam (Netherlands), is long and time consuming.
The new route would comprise of sea and land links across India, Iran and Russia and will shorten travel time by as much as ten days. The new route could extend from Mumbai- Bandar Abbas (Iran)-Astrakhan (Russia), the study suggested.
India-Russia trade grew by 41 percent at $ 2.76 billion in 2005-06, over the previous year. The two countries have set a target of touching $ 10 billion by 2010.