Speaking at a session of the bilateral commission on trade ahead of the Russian president's visit to India, Alexander Zhukov said: "We are not only aiming to boost the figures measuring cooperation, raising trade to $10 billion by 2010, but we also want our cooperation to reach a modern level, by expanding investment and science and research ties."
Zhukov said bilateral trade in January-September 2008 grew 54.7% year-on-year to $4.7 billion, with Russian exports growing 62.6% to $3.5 billion and Indian exports by 36.5% to $1.2 billion.
Russia sells to India power plant and other equipment, fertilizers, chemical products, copper, nickel, plastic goods and wheat. India has exported machinery and pharmaceutical goods to Russia.
India's investment in Russia - mainly direct investment in the oil and gas industry, banking and information technology - reached more than $820 million in the first half of this year, Zhukov said.
He highlighted a major project of Russia's AFK Sistema in India. The telecoms and services holding reportedly planned to invest $5-7 billion in launching a mobile communications network in India. The company has so far invested $1 billion in the project.
A Russian government official taking part in the session said Russia has proposed setting up a joint venture in India to produce new-generation antibiotics. Russia's portion of investment (55%) in the estimated $105 billion project is proposed to be paid by India as part of its debt to the country.
"Given the considerable price advantages of Indian-made medicines, Russia has taken steps to remove barriers hampering its cooperation in the pharmaceutical sphere," the official said.
Indian-made pharmaceutical products currently account for 4.1% of the Russian market, he said adding, however, that their quality remains a problem. The official said contacts with Indian producers and state bodies to improve control over quality was a priority in bilateral cooperation in this sphere.
President Medvedev's two-day visit to India will begin on Thursday. Medvedev and Indian Prime Minister Manmohan Singh are to discuss anti-terrorism cooperation in the wake of terrorist attacks on the country's commercial capital Mumbai last week.
The visit is expected to see the signing of a series of agreements, including on nuclear cooperation. Russia will help build another four reactors at India's Kudankulam nuclear power plant to add to the two already built.
