'UN In Its Present Form No Longer Reflects Global Realities'

 16 May, 2003

Mr. Minister, this is your second visit to Moscow this year. You are now visiting for the Joint Commissionmeeting. What’s the agenda of the forthcoming meeting of the Indo-Russian Inter-Governmental JointCommission? 

The 9th Session of the Indo-Russian Inter-Governmental Commission assumes significance asit takes against the backdrop of a number of initiatives that have created a positive setting for expansion ofeconomic and commercial ties. Both India and Russia represent large and growing market economies withtremendous potential for growth. Both have made impressive progress with structural reforms in recent years.At a time of major global economic slowdown, India and Russia have continued to grow. Average GDP growthduring the last four years places both countries among the top ten performers in the world. This created newopportunities for bilateral cooperation. An example of progress in making use of this is our investment of$1.7 billion in Sakhalin-I Project. There are several new investment proposals under consideration. Our JointBusiness was recently revived and met this year. Areas of cooperation of Indian business in Russia includemachinery and equipment, IT, automobile!  components, gems and jewellery, food processing, tourism,pharmaceuticals, biotechnology and energy.  

We are working on strengthening infrastructural linkage between our two countries.Contacts between our banking sectors are increasing, and this has led to building of greater trust andunderstanding. The first Indian commercial bank is expected to open in Moscow later this year. Along withother participating countries India and Russia are working on North-South Transport Corridor – a viable andcommercially attractive trade route. We are also working actively on creating a favorable environment forbilateral investment, streamlining customs administration and putting in place an efficient visa regime forbusiness exchanges.   

The forthcoming session of the IRIGC would review the entire gamut of economic andcommercial engagement; explore new areas of cooperation as well as means for expanding our trade andinvestment ties.  

During President Putin’s visit to India last December, the sides signed JointDeclaration for Strengthening and Increasing economic, science and technical cooperation between the RussianFederation and India, which has 20 points. How successfully is that Declaration being implemented? 

That Declaration is truly a landmark document. It highlights our shared desire to imparta new trust to our bilateral economic and commercial engagement. It provides a roadmap and a series ofactionable points to accomplish this task. The implementation of the directives contained in the JointDeclaration would need concerted efforts and cooperation from a number of agencies on both sides, includingour business sectors. The Declaration has mandated the IRIGC to set up a task force to oversee itsimplementation. We would like to activate the task force in order to provide a positive progress report to thenext Summit meeting. The economic component has to play a very important role in our relationship.  

Does India recognize Russia as a country with market economy and how widely does Indiaapply anti-dumpling procedures against Russian exports? 

India doesn’t list Russia as a non-market economy. The Joint Declaration acknowledgesthe fact that Russia, like India, is a growing market economy. This is not a merely a political decision, butis also meant to provide a level playing field for the Russian products in Indian market. Anti-dumpinginvestigations, in keeping with relevant WTO resolution, have a legal dimension and we have briefed ourRussian colleagues on these aspects. There are ongoing consultations on these matters. I may also add thatanti-dumping investigations on products imported from Russia are far insignificant as compared to productsfrom some other trading partners of India, with only one case under investigation in 2002.  

What is India’s attitude toward its membership in Shanghai Cooperation Organization(SCO)?

The Shanghai Cooperation Organization is an active body in India’s near-neighborhood.We have seen this organization grow with interest. The aims and objectives of SCO are issues, which alsointerest India deeply. The fight with terrorism concerns the member countries of SCO as well as India. Theeconomic development of the Central Asian region, including development of its energy resources, is anotherarea of our common interest.  

Because of this, many members of the SCO have suggested that India’s membership of theorganization would be mutually beneficial. We are thankful for this suggestion.  

After the U.S.–led war troops invaded Iraq, many talk about the United Nations at acrisis. Do you think that institute is outdated and needs to be reformed? 

To say that because of the Iraq war the UN has become outdated is incorrect. It should berecalled that this is not the first time that military action has been initiated without UN authorization. Wehave to recognize both the strengths and weaknesses of the United Nations. It is as strong or weak as theresolve of the international community, especially the major powers. The UN is the only internationalorganization with universal membership and it derives its powers form its members.  

However, the United Nations does need to be reformed if it is to recover its weakenedauthority and role. India has long been of the view that the UN in its present form no longer reflects theglobal realities. A restructuring of the organization – particularly of the Security Council – is urgentlyrequired. We have been calling for an explanation in both, the permanent and non-permanent membership of theUNSC, so as to better represent the different regions of the globe and the interests of developing countries.An expanded, more representative Security Council would also go some way in circumventing avoidable conflictsof the Iraq variety. Russia shares our views and has offered consistent support and cooperation to our effortson this front, particularly to our aspiration – as the largest democracy and the second most populous nationin the world – for permanent membership of the Security Council.