BRICS countries should consider harmonising value-added tax (VAT) rates to stimulate mutual trade. This was stated by Anupam Mishra, a member of the Indian Business Council and a businessman in the agricultural wholesale trade sector, on the TV BRICS programme “BRICSdialogue”.
“BRICS countries should consider how to improve trade within the group. Why shouldn’t the major countries agree, for example, on a VAT rate of 15 per cent instead of 22? A solution needs to be found at the government level,” the businessman noted.
According to Mishra, enhancing trade connections among the member states of the group could create new opportunities for the agricultural sector. In particular, India produces more than 90 varieties of mango, as well as high-quality guava and saffron. However, these products are not yet sufficiently represented on the Russian market.
As an example of the successful presence of Indian agricultural produce on the Russian market, the expert cited basmati rice, which has been supplied to Russia for several years now.
“Basmati rice is currently gaining popularity. I believe India accounts for around 68 per cent of global production of this crop. Its largest buyer is Saudi Arabia,” he said.
India and China together produce 300 million tonnes of rice. China directs all its rice towards domestic consumption, while India exports it, as the country also consumes wheat and other cereals. Around 32 per cent of India’s population are vegetarians, which is why meat and fresh agricultural produce are exported. India imports wheat from abroad when harvests are poor.
Speaking about the potential of Russian agriculture, the expert highlighted the country’s vast expanses of fertile land.
“There really are a lot of black earth fields in Russia. A wide variety of products can be produced here in large volumes. At present, your main focus is on a single crop. But try attracting labour from India and China – we have a surplus of labour resources,” the businessman noted.
According to Mishra, increasing production will make it possible to expand the range of agricultural products grown in Russia.