Moscow, 10 June 1963
The Government of India and the Government of the Union of Soviet Socialist Republics,
NOTING with satisfaction the successful development of trade relations, and
BEING desirous of further increase of the volume of trade between the two parties,
HAVE agreed upon the following
The Contracting Parties will, in every possible way, develop and strengthen trade relations between the two countries on the principles
of equality and mutual benefit. They will study and with utmost goodwill take decision on the suggestions which either of them would
like to present for considerations of the other with the purpose of achieving closer economic relations.
The Contracting Parties will accord upon importation and exportation of goods from one country to the other maximum facilities allowed
by their respective laws, rules and regulations. In any case the said goods shall enjoy full most-favoured-nation treatment with
respect to customs duties and charges of any kind imposed on imports or exports or in connection therewith, with respect to the methods
of levying such duties and charges, with respect to rules, formalities and charges in connection with customs clearing operations,
and with respect to the application of internal taxes or other charges of any kind imposed on or in connection with imported goods.
The Contracting Parties will accord to each other in respect of the issuance of import and 5901 licences treatment no less favourable
than that granted to any other country.
Any advantage, favour, privilege or immunity granted by either of the Contracting Parties to import or export of any product originating
in the territory of a third country or destined for its territory, shall be accorded immediately and unconditionally to the like
product originating in the territory of either of the Contracting Parties or destined to be imported into its territory.
The provisions of Articles II and III shall not, however apply to the grant or continuance of any:
(a) advantages accorded by either Government to contiguous countries with Purpose of facilitating frontier traffic;
(b) Preferences or advantages accorded by India to any third country and existing on December 2, 1953 or in replacement of such preferences
or advantages that existed prior to the 15th of August, 1947.
Juridical and Physical Persons of either Contracting Party shall enjoy the Most-favoured-nation treatment in respect of personal protection
and protection of property when effecting commercial activities in the territory of the other Party provided that the enjoyment of
this treatment shall be subject to the laws and regulations of such other Party which are generally applicable to all foreigners
Mercantile ships of either country with or without cargoes, therein, will, while entering, staying in or leaving the ports of the
other country, enjoy regulations applicable to ships under third countries' flags. This principle shall not, however, apply to ships
engaged in coastal navigation.
The export of goods from India to the U.S.S.R. and from the U.S.S.R. to India during the period of validity of the present Agreement
will be carried out in accordance with the Schedules to be agreed upon between the two Governments from time to time. The schedules,
as agreed, are attached to the Agreement.
The provisions of the present Agreement do not affect the rights of the Indian physical and juridical parties and the Soviet foreign
trade organisations to conclude between themselves, subject to the import, export, and foreign exchange regulations, in force from
time to time in both the countries commercial transactions for the import or export of goods not included in the Schedules.
The import and export of the goods stipulated in Article VI will be carried out in accordance with the export, import and foreign
exchange regulations in force from time to time in either country and on the basis of contracts to be concluded between Indian physical
and juridical parties including Indian State-owned organization on the one side and Soviet foreign trade organization on the other.
1. All payments of a commercial and non-commercial nature between India and the U.S.S.R. will be effected in Indian rupees.
2. For this purpose, the Bank for Foreign Trade of the U.S.S.R. will maintain a Central Account with the Reserve Bank of India and
one or more accounts with one or more commercial banks in India authorized to deal in foreign exchange.
3. (a) The Central Accounts will be used for depositing the rupee holdings, for replenishing the accounts with the commercial banks,
and for operating transactions relating to technical credit.
(b) The Accounts with the commercial banks will be replenished by carrying out all operations of commercial and non-commercial nature.
4. (a) The Central Accounts will be replenished by transfers of funds from the accounts with the commercial banks mentioned in clause
2, and by receipts under the technical credit.
(b) The Accounts with the commercial banks will be replenished by transfers of the funds from other similar accounts mentioned in
clause 2 and from the Central Accounts.
(c) Payments permitted in accordance with the Indian Foreign Exchange Control Laws and Regulations and the rules made thereunder,
will be effected on the basis of this Agreement to the physical and juridical persons residing in the U.S.S.R. by the physical and
juridical persons residing in India, by crediting the amount of such payment to the said account (accounts) of the Bank for Foreign
Trade of the U.S.S.R. With the commercial bank (banks). Likewise the payments to be effected by the physical and juridical persons
residing in the U.S.S.R. to the physical and juridical persons residing in India, will be effected by debiting the said account (accounts)
with the commercial bank (banks) in India.
The Reserve Bank of India and the Bank for Foreign Trade of the U.S.S.R. will jointly establish the technical procedure of keeping
the accounts under this Agreement.
Any balances in the Rupee Accounts of the Bank for Foreign Trade of the U.S.S.R. or any debt of the Bank for Foreign Trade of the
U.S.S.R. in connection with the grant of technical credit will, upon expiry of this Agreement, be used during the ensuing six months
for the purchase of Indian or Soviet goods, as the case may be, or shall be settled in such other way as may be agreed upon between
the two Parties.
The two Governments will render all possible assistance for the shipment of the goods exported and imported under this Agreement from
one country to the other as far as possible in Indian and Soviet ships.
The Contracting Parties shall consult with each other, as and when necessary in respect of the matter connected with the implementation
of the Agreement.
For this purpose representatives of both Parties will meet on request by either Party at a place and time to be mutually agreed upon
but not later than 45 days after the date of the request.
The present Agreement will come into force on January 1, 1964 and will remain valid for a period of five years.
The Agreement may be extended or renewed by negotiations between contracting parties. In two original copies each in the English and
Russian language, both texts being equally authentic.
DONE in Moscow on June 10th, 1963
By Authority of the Government of India.
By Authority of the Union of Soviet Socialist Republics.
GOODS FOR EXPORT FROM INDIA TO U.S.S.R
raw Goat skins
raw semi-tanned and tanned
Vegetable oils, including Castor oil
Spices (black pepper and cardamom)
fresh Cashew kernels
Cotton piece goods
Drugs and pharmaceuticals including quinine salts, hormones and vitamin A natural
various chemical products including insecticides
Books, periodicals and Postage stamps
Exposed cinematographic films
Engineering products including metal cutting Precisions tools/ punms compressors, components and ancillaries for Chemical and oil
textile machinery including hosiery machinery and needles
fans, air conditioners and other electro-technical appliances
Woollen and cotton knitted wear including hosiery Men's shirts
Fancy leather goods
Fruit juices and canned fruit
Linoleum and Tarpaulins
GOODS FOR EXPORT FROM U.S.S.R. TO INDIA
Machine tools and other metal working machines
Power and electrotechnical equipment
Generating sets (diesel and Petrol)
Lifting and transport equipment-cranes and generators
equipment, including mobile and E.O.T. cranes
Construction and earth moving equipments including excavators dum bull-dozers, scrapers
Geological prospecting and oil drilling equipment and spare parts
Machinery for food industry
Cotton/woollen textile machinery
Printing machinery and Polygraphic equipment
Laboratory testing machines - optical and control measurements and abrasive grains
Ball, roller and taper bearings
Wheel tractors components, agriculture machinery and spare parts
Machinery repair and servicing equipment
River transport, dredging marine diesel engines and other equipment
Aircrafts-helicopters and other equipment
Spare parts, components, industrial material etc. for H.E.C., Ranchi and Bhilai steel Plant
Other machinery and equipment
Rolled steel products
apparatus, metal cutting instruments
Pig iron foundry grade
Intermediates for dyes
Raw film, photographic paper and materials
Muriate of Potash Asbestos
Paper-kraft, packing and other varieties
Medicines and drugs in bulk
Medical and veterinary instruments and equipments
Books and periodicals and postage stamps
Exposed cinematographic films