Russia Macro Environment: India Perspective

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(Macro Environment Analysis)

RUSSIA

Agenda
• • • • • • Introduction: India – Russia Relations Macro-Economic Indicators Socio-Economic Indicators Doing Business in Russia Economic Environment Trade and Suggestive Approach

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Introduction: India - Russia Relations
• Both are members of international bodies : UN, BRICS , G20 & SCO • Russia supports India for the permanent seat on the UNSC • India is the 2nd largest market for the Russian defense industry • Bilateral Trade grew by 30 % in 2012

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Russia Macro Economic Indicators (2011-12)
S.No
1

Indicator

Statistics

GDP
GDP Growth Rate

$1.850 Trillion (2011) (Nominal 9th)
$ 2.373 Trillion (2011 est. ) (PPP; 6th) 3.50%

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GDP per capita
Inflations (CPI)

$ 13, 236 (2011) (nominal)
$16,687 (2011) (PPP) 6.60%

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Credit Ratings

S& P : BBB+ (Domestic); BBB (Foreign); BBB (T&C Assessment) Moody’ s : BAA1 Fitch : BBB $36 billion, 2.5% of GDP (1 Nov, 2011 ) $519.4 billion (30 September 2011 est.)

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Public Debt
Gross external debt

Source : http://en.wikipedia.org/wiki/Economy_of_Russia

Macro Economic Indicators
8 Exports $520.9 billion (2011 est.)

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Main export partners (2011)

a) Netherlands : 12.3% b) China : 6.5% c) Italy : 5.6% d) Germany : 4.6%, e) Poland : 4.3% 1) Petroleum & petroleum products 2) Natural gas 3) metals 4) Wood and wood products 5) Chemicals, 6) And a wide variety of civilian and military manufactures

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Export goods

Macro Economic Indicators
11 Imports (2011 est.) $322.5 billion 1) Machinery, 2)Vehicles, 3)Pharmaceutical products, 4) Plastic , 5)Semi-finished metal products, 6) Meat, 7)Fruits and nuts, 8)Optical and medical instruments, 9) Iron, steel a) China 15.6%, b)Germany 10%, c)Ukraine 6.6%, d) Italy 4.3% 112th ( 2013)

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Import goods

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Main import partners (2011) Ease of Doing Business

Socio Economic Indicators
• Life expectancy from birth : 70.3 years (2011) • Adjusted net enrollment rate, primary (% of primary school age children) : 95.65 • Electricity production (kWh) : 9.90 • Health expenditure, total (% of GDP) : 5.07 • Literacy rate, adult total (% of people ages 15 and above) : 99.57

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Doing Business – Key Business Regulations
 Ease to carry out business in Russia:
(1) Starting a business

(2) Dealing with construction permits
(3) Getting electricity (4) Registering property

Business Environment Ranks on “Doing Business“

(5) Paying taxes
(6) Trading across borders (7) Enforcing contracts

(8) Protecting investors
(9) Getting credit (10) Resolving insolvency

Doing Business – Key Business Regulations
‘tracking distance to the frontier’: Russia’s progress since 2005

Narrowing the Distance to the Frontier from 2005 to 2012

Doing Business – Key Business Regulations
Starting a Business: Compared globally, it is inexpensive in Russia

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Business Regulations – Key Areas
Starting a Business: Improvements over time

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Business Regulations – Key Areas
Construction Permit: requirements vary significantly across cities, especially before construction No. Of Procedures

Cities

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Business Regulations – Key Areas
Construction Permit: Improvements over time

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Business Regulations – Key Areas
Getting electricity: Fewer procedures do not necessarily shorten delays Time varies from city to city from 4 months to 1 year (Moscow 281 days)

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Business Regulations – Key Areas
Getting electricity: One of the worst rankings

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Business Regulations – Key Areas
Property Registration: is easy and inexpensive in Russia
Procedures, time and cost to register property
Brazil

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60

Yakutsk

7.3

India

45 44
Eastern Europe & Central Asia, Japan, Turkey

Kemerovo St. Petersburg

5.7 5.2
4.4 4.0 3.6 3.3 2.8 2.3

Japan
Germany OECD high income Finland China Turkey Eastern Europe & Central Asia Brazil

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