Economic partnership between Powerhouses

Economic partnership between Powerhouses

In December 2017 foreign ministers of Russia, India, and China met for their fifteenth ministerial trilateral meeting in New Delhi. They want to boost further bilateral relations and trade.

China, India and Russia economic influence has been on the rise. Along with another emerging economy Brazil, China as well as India will attain the status as global dominant suppliers for manufactured goods as well as services, while Russia and Brazil plays a key role as raw materials suppliers for the upcoming decades to come. Russia became a key exporter of energy as well as military supply for India and China. Efficiency of trade is achieved due to close proximity between the 3 powerhouse nations. For years they have forged a beneficial trade partnership for all parties. Overall economic growth within Asia was spurred by the economic trades and partnerships. It is imperative for the economic partnership to remain solid for many years to come in order to power up growth for the whole Asian region. Did you know BRIC is an acronym for countries of Brazil, Russia, India and China.

China and Russia trade relationship have come a long way. In 2009, Transneft, the government owned monopoly for state oil pipeline, declared that the 2 countries had signed a 20 year energy deal worth $25 billion that will see Russia supplying fifteen million tons worth of oil and China in return providing government loans. OAO Rosneft and Transneft will be the loan benediciaries with each receiving $15 billion and $10 billion respectively. The pipeline stretches from west of Siberia, about 45 miles up north from China Russian country broders. China views the deal as being able to reduce oil import risks. Vladimir Putin commended on the deal as a win for steady oil market for Russia. Russia is on track to be China's largest supplier for energy within the coming 10 to 15 years as commented by Vice Prime Minister for Russia. The deal will catapult Russia as the biggest oil market in Asia.

India and Russia were established trade partners for many years. India has been sourcing military weapons from Russia, which includes planes, tanks as well as nuclear power. India's economy is powered by the services sectors and lacks natural resources. India will need 3 times the amount of oil it currently consumes. It needs new energy source and supplies or else its economic growth will stutter. India has partnered with Russia for its oil supplies and Russia is also dependent on India for steady oil and military contract revenues. It is estimated that total exports for military items and goods totaled $35 billion over a span of 40 years. Russia and India share military intelligence and technology for mutual benefits via production and sharing agreements. The latest venture is partnership to produce fighter aircrafts that will last for 50 years. The ultimate aim is to develop cutting edge technology and to greatly cut down production costs in order to mass manufacture the jets. It is currently developing the 5th generation aircraft and good progress has been made.

China, India and Russia's influence on the global scene cannot be underestimated for the coming years in the future. By 2050, together with Brazil, these 4 economies will be richer than current superpowers in the West. Each country has their strengths and unique growth engine. China's large surplus in its current account, Russia's abundance of raw materials and India's professional and well established services sector especially IT software and technology are prime evidence of focusing on their existing specializations and grow as a whole by fostering solid partnerships in economic terms in order to promote smooth trade and deals.

It is a matter of time before the 3 nations powers the growth for the whole world. They are becoming more dominant and have the capability to produce quality goods for the benefit of consumers worldwide.