RUSSIAN FAR EAST
It is a region extending between Lake Baikal and the Pacific Ocean. For the 1st time, an Indian Prime Minister visited the Russian Far East Region (Vladivostok) during the 5th meeting of the Eastern Economic Forum (EEF).
Importance of Russian Far East for India
- Gateway to North Asia and Arctic: It would connect India to East Asia and also to the Arctic.
- Economic opportunities: The region is rich in natural resources, particularly diamonds, gold, oil, natural gas, coal, timber, silver etc.
- Employment opportunities: Indian professionals like doctors, engineers and teachers can help in the region’s development.
- Key in pivot to Asia: Presence in these areas will help to tackle China economically and strategically.
- Energy security of India: Area is rich in hydrocarbon reserves. ONGC Videsh has already invested in the Sakhalin-1 project.
- Manufacturing Industries and access to new Market: Infrastructure, pharmaceuticals, and agriculture development are also areas of opportunity for Indian Industries.
Limitations
- Protective Government: The Russian government has too much power in the business affairs and thus investments would be vetted by it.
- Distance: The Area is remote and lacks connectivity to major India hurdles for Indian Trade and investments.
- Rough Climate: The climate may not be suitable for all sorts of projects and also deter potential investors.
- Chinese Presence: The area borders China and has the presence of Chinese elements which may prove to hinder Indian interests.
- Lack of returns: The region is remote and may not be very lucrative for development.
- Low Population: A lack of population in the area means low labour rates and thus higher cost of employment.
India is emerging as a global power and thus must explore all opportunities for investments in key sectors abroad. Investing in the Russian Far East helps bridge the gap that has come between India and Russia in recent years and also helps Chinese expansionism in their own backyard