Indian SMEs Capitalising on Armenian Avenues

In the Soviet era, Armenia was a highly industrialisedArmenia too has sought assistance from Indian SMEs
nation and a leading manufacturer and exporter ofin the IT segment to boost its evolving IT industry.
textiles, machine tools and automotive components.Armenia is a lucrative trade destination for Indian
Following the disintegration of Soviet Union, ArmeniaSMEs engaged in the textiles sector. By setting up
shifted its focus to the agriculture sector that wasmanufacturing units in Armenia, Indian SMEs can gain
once an insignificant segment of the economy.easy access to the Commonwealth of Independent
Today, Armenia is known for its stable economy,States (CIS) countries that do not levy taxes on
steady growth and openness towards privatisation.Armenian goods.
The country is also an important energy exporter toThe thriving gems and jewellery sector in Armenia is
a number of European and Asian nations. Owing toanother segment that Indian SMEs, particularly those
the investment friendly climate in Armenia, severalengaged in exporting diamond can explore. Armenia
Indian SMEs are eyeing this Central European countryimports raw diamonds primarily from Russia. Indian
for trade and investment opportunities.diamond exporters can strengthen their foothold in
In recent times, India has become an important Asianthe gems and jewellery sector by supplying their B2b
trading partner of Armenia. Notably, total exportsProductsin the Armenian market.
from India to Armenia in 2008 were pegged atPromoting bilateral Trade Leads
around $48.9 million, while Armenian exports to IndiaTo promote increased economic exchanges between
during the same period hovered at around $2.4 million.the two countries, the Armenian embassy in India
India's export basket for Armenia consists ofinitiated a "four plus one" policy of sector-specific
electrical equipment, plastics, pharmaceuticals,cooperation. Under this policy, Armenia has sought
chemical goods and optical equipments. Alternately,assistance from India to boost its four key sectors.
Armenia exports raw rubber, textiles, books and nonThese include IT, agriculture, science and technology
ferrous metals to India.(S&T) and SME.
Sectors of growthIndia is assisting Armenia by conducting training
According to market experts, India and Armenia areprogrammes on a regular basis. With both countries
yet to tap the opportunities that exist in bilateraladopting a positive approach to enhance trade
trade. Indian SMEs in the IT sector can enter intorelations, Indian SMEs can be optimistic about their
strategic alliances with their Armenian counterpartsgrowth prospects in Armenia in the near term.
for knowledge-sharing and technology transfer.