MOSCOW: Union Finance Minister P. Chidambaram on Saturday made a strong plea to developed nations to open up their markets for developing economies.

"Aid for trade cannot be a substitute for the development benefits that will result from a successful conclusion to the DDA [Doha Development Agenda], particularly in areas of market access," the Indian Embassy quoted him as having said at a breakfast meeting here of the G8 Finance Ministers with their counterparts from India, Brazil, China and South Africa.

Aid for trade

Meeting mediapersons later, he said aid for trade was a useful instrument for the least developed countries. But for larger developing economies such as India or China, it was market access that mattered. Unless this issue was addressed, the Doha round of the WTO talks would not reach a successful conclusion.

In particular, market access for agricultural products posed a serious problem even as marginal progress was made at the Hong Kong ministerial meeting. India would not accept any settlement that adversely affected its rural sector and would look for effective safeguards for its farmers. Substantial progress was yet to be made on the issue of non-agricultural market access and services.

Energy security

Mr. Chidambaram said he was happy to visit Moscow for the meeting since Russia had taken up G8 chairmanship in 2006 and India's relations with the country were close. India supported Russia putting energy security high on the G-8 agenda. Large and long-term producers of energy required large and long-term consumers in the interests of global energy stability.

He described as "entirely feasible" the tripling of Indo-Russian trade over the next few years from the current level of less than $3 billion.

Russia could step up sale of oil and gas, capital goods and technologies, while India had the potential to increase exports of auto parts, two-wheelers, machine tools, leather goods, textiles and refined petroleum products.

As problems in getting business visas continued to hamper bilateral ties, the Indian side would raise the issue with Russia's Deputy Prime Minister Alexander Zhukov and Prime Minister Mikhail Fradkov when they visited India next month.

Mr. Chidambaram expressed satisfaction that three Indian banks — STI, Canara Bank and ICICI — had established a foothold in Russia. India would like Russian banks to be present in India.

On Moscow's proposal to convert $1 billion of the remaining Indian rupee debt into investment by Russian companies in India, he said the two sides had concluded talks.

India was now awaiting Moscow's approval of the understanding reached in New Delhi during Russian Economic Development and Trade Minister German Gref's recent visit to India.

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