The government of Armenia approved a draft measure on signing a agreement with India to promote economic investments. Hovhannes Azizyan deputy minister of economic development and investments, said the agreement will facilitate investments in both countries and guarantee protection for investors.
"We expect to see a number of new Armenian-Indian projects launching in the fields of information technologies, textile, processing industries and other sectors," Armenpress quoted Azizyan as saying.
The IT field remains one of the priorities of the Armenian government. The country's IT field recorded 35% growth in the first half of 2017 according to Vahan Martirosyan, minister of transport, communication and information technologies.
The draft includes articles on investment promotion and protection, compensation for damages, dispute resolution between the sides and regulation of alienation of property.
India was one of the first countries to recognize Armenia's independence in 1991. Diplomatic ties between the two countries were established on 31 August 1992. According to data by the Embassy of India to Armenia, bilateral trade reached US$ 31 million in January-November 2014. Imports from India amounted to US$ 30.8 million. While exports to India reached US$ 0.2 million.
According to data by the Embassy of Armenia to India, main imports include: Meat, tea, rice, precious stones, medicines, textile products, jewelry, industrial products, plastic, electronics. Main exports include: Precious and semi-precious stones, cooper and copper products, aluminum and aluminum products, chemical industry products, non-ferrous metals, metallic scrub, raw rubber.
Bilateral trade (in thous. US dollars)
2015 426.3 52366.9
2016 1769.5 71892.3
(Source: Embassy of Armenia to India)
The International Monetary Fund forecasts a 2.9 percent GDP growth for Armenia in 2017 and 2018. In its World Economic Outlook published in April 2017, the IMF says that a 1.4 percent deflation in 2016 will be followed by a two-percent inflation rate in 2017 and 3.5% inflation in 2018.