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Russia’s “Innoprom 2016” to unite the world’s economic giants

Innoprom 2016

Russia’s main industrial trade fair, Innoprom held in Yekaterinburg is about to break yet another record. With participants from more than 95 countries the 7th annual industrial fair will host 150 business events for more than 600 companies around the world. According to Anton Atrashkin, the head of Innoprom Business Program, a unique format of the fair allows to know everything about Russia’s industrial policy within 4 days.

Located in the Russia’s Ural region, the city of Yekaterinburg is traditionally known as a host for major industrial and economic events. Among them are the SCO summit in 2009, the 31st Russia-EU Summit 2013 and Russia-Germany negotiations in 2010. Fair enough: the Urals is traditionally known as Russia’s industrial center with biggest machine-building, electrical engineering and metallurgy companies located on its territory. The city’s modern infrastructure and fast-growing economic development explains the choice of the platform for Innoprom. Traditionally engaging one of the countries as a partner, Innoprom 2016 is going off the beat and is about to unite two major economic giants this year: India and China. Our Russia’s Olga Malik has found out who is ahead of the world’s industry today and what the role of Russia in this race is.

Prime Minister Dmity Medvedev at Innoprom

India vs China

China and India are the two biggest emerging economies today. China started its economic development in the 1980s reaching 9% of the world’s GDP ratio by 2003. The reason of such incredible economic growth was enormous budget smartly invested by the Chinese government to the country’s development. In the 2000s China was largely buying the world’s innovative technologies which were later implemented in Chinese industrial companies. For instance, the automobile concern Volkswagen that lodged its production process in China was a perfect example for Chinese industrialists who learned how a successful car industry should be organized. As a result, in 2012 China launched production of its own Chery Automotive и Geely Automotive with much lesser costs compared to foreign producers.

Meanwhile India, China’s major competitor, overcame China by its GDP ratio at the end of 2015 reaching the point of 7,6 % against China’s 6,9%. The debate of whether India would take over China in 2016 would lead some of the Innoprom plenary sessions. According to some economists, as oil becomes cheaper India has all the resources to shortly overcome Brazil and South Africa. However, India’s unlikely to become the “next China” since the China’s contribution to the world’s economy is still much bigger.  

Russia’s role: more than a host

Russia, the best partner of both India and China, continues going East. Being a major raw materials supplier for India and a top strategic partner for the country’s military technical sector, Russia has amazing business opportunities in India today. The new industrial project “Make in India”, launched by the Modi’s government has already been supported by the world’s and Russia’s biggest companies.

China, for its part, is planning major investments in its partners’ economies in 2016-2017 rating Russia as a number one priority for investments in transportation corridors (due to Russia’s geographical location and strong economic ties with China). The freight traffic from Chinese province Heilongjiang to the Russia’s seaport Nahodka reduced the costs of Chinese companies located in the North-East by 10-12% in 2015.