Indian SMEs capitalising on Armenian Avenues
By Money Master on October 18th, 2009
In the Soviet era, Armenia was a highly industrialised nation and a
leading manufacturer and exporter of textiles, machine tools and
automotive components. Following the disintegration of Soviet Union,
Armenia shifted its focus to the agriculture sector that was once an
insignificant segment of the economy. Today, Armenia is known for its
stable economy, steady growth and openness towards privatisation. The
country is also an important energy exporter to a number of European
and Asian nations. Owing to the investment friendly climate in
Armenia, several Indian SMEs are eyeing this Central European country
for trade and investment opportunities. In recent times, India has
become an important Asian trading partner of Armenia. Notably, total
exports from India to Armenia in 2008 were pegged at around $48.9
million, while Armenian exports to India during the same period
hovered at around $2.4 million. India’s export basket for Armenia
consists of electrical equipment, plastics, pharmaceuticals, chemical
goods and optical equipments. Alternately, Armenia exports raw rubber,
textiles, books and non ferrous metals to India. Sectors of growth
According to market experts, India and Armenia are yet to tap the
opportunities that exist in bilateral trade. Indian SMEs in the IT
sector can enter into strategic alliances with their Armenian
counterparts for knowledge-sharing and technology transfer. Armenia
too has sought assistance from Indian SMEs in the IT segment to boost
its evolving IT industry. Armenia is a lucrative trade destination for
Indian SMEs engaged in the textiles sector. By setting up
manufacturing units in Armenia, Indian SMEs can gain easy access to
the Commonwealth of Independent States (CIS) countries that do not
levy taxes on Armenian goods. The thriving gems and jewellery sector
in Armenia is another segment that Indian SMEs, particularly those
engaged in exporting diamond can explore. Armenia imports raw diamonds
primarily from Russia. Indian diamond exporters can strengthen their
foothold in the gems and jewellery sector by supplying their B2b
Products in the Armenian market. Promoting bilateral Trade Leads To
promote increased economic exchanges between the two countries, the
Armenian embassy in India initiated a `four plus one’ policy of
sector-specific cooperation. Under this policy, Armenia has sought
assistance from India to boost its four key sectors. These include IT,
agriculture, science and technology (S&T) and SME. India is assisting
Armenia by conducting training programmes on a regular basis. With
both countries adopting a positive approach to enhance trade
relations, Indian SMEs can be optimistic about their growth prospects
in Armenia in the near term. For more detail on B2B log on to
http://www.bizxchange.
David Parks is a well known author and has written articles on
Business Directory, B2B Portal, IT Solution Companies, suppliers,
Manufactures and many other subjects.
s-capitalising-on-armenian-avenues
From: Emil Lazarian | Ararat NewsPress
