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MIL OSI Translation. Region: Russian Federation –

Source: Ministry of Economic Development (Russia) – An important disclaimer is located at the bottom of this article.

Representatives of the business communities of Russia and India are interested in implementing joint projects and mutual investments. This was stated by Deputy Minister of Economic Development of Russia Vladimir Ilyichev during the plenary session of the first Russian-Indian Investment Forum. The main topic of the investment forum was a discussion of existing and future government support measures for the growth of mutual investments.

India is one of Russia’s key trading partners. Over the past five years, the volume of mutual trade has increased fivefold. In 2023, India rose to second place and reached a share of 8% in Russia’s total foreign trade. Over the past year alone, trade turnover between the two countries increased by 61% to $56.8 billion, reaching a new historical high. In 2024, the positive dynamics continue – in the first 3 months, trade turnover increased by 18%

“Exports in 2023 increased by 66.1%, imports increased by 23%. The main share of Russian exports to India continues to be mineral raw materials, food and metals, Vladimir Ilyichev cited the data. — Imports of goods from India in 2023 showed steady growth in all product categories. The largest increase in imports from India was recorded in the supply of machinery and technical products and vehicles, chemical products and metals. Food supplies from India alone amounted to over $1 billion.”

Russia and India, according to the deputy minister, are striving to achieve greater stability and predictability of bilateral trade. During the forum, the parties discussed steps to diversify the structure of trade flows and expand the range of supplied products.

“Business in the two countries needs to make it easier to find new product niches and enter the market. The growth of bilateral trade can be facilitated by an increase in investment activity of the parties and mutual penetration of the economies of Russia and India,” commented Vladimir Ilyichev. Deputy Minister of Economic Development of Russia Murat Kerefov spoke about investment support mechanisms within the forum. Among the key instruments that form the basic conditions for investment, the Deputy Minister highlighted the regional investment standard, which is aimed at creating a favorable administrative and legal environment through a unified system for attracting investments and eliminating typical barriers for investors. As well as agreements on the protection and promotion of capital investments (SPPK), which create predictable conditions for the implementation of large projects. “We see good statistics on the mechanism – since 2020, 68 SPPs have already been concluded for a total investment of more than 4 trillion rubles,” commented Murat Kerefov.

He added that investments in Russia last year reached 34 trillion rubles – an increase of 9.8% is a record compared to previous periods. Their peculiarity was the transition of the initiative to private business and the growth of investments in machinery, equipment and intellectual property.

“At the same time, foreign investors locating their production in Russia have access to the same support measures as Russian companies. The key condition is registration of a Russian legal entity,” the deputy minister emphasized.

The parties agreed that in the context of the current restrictive measures against Russia, special attention should be paid to infrastructural issues of organizing foreign economic activity – to develop joint financial and banking mechanisms, focusing on settlements for export-import transactions, which will allow maintaining high rates of development of bilateral cooperation. One of the central topics of the Russian-Indian Investment Forum was the discussion of the possibility of renewing the Agreement on the Encouragement and Mutual Protection of Investments. The Russian side advocated for a balanced agreement that would take into account the interests of all participants – both investors and the state.

“On the one hand, the agreement should not provide complete freedom to investors; it is necessary to reserve the state’s right to apply legitimate regulatory measures,” noted Vladimir Ilyichev. — On the other hand, the state should not be tempted to take arbitrary or unjustified measures. An investor should have a clear set of rights and effective tools to protect them.”

Russia invited its Indian colleagues to consider the possibility of reformatting the current negotiations into negotiations on concluding an agreement on trade in services and investments, which includes issues of investor protection and investment. A different format of the agreement will allow countries to take more flexible approaches during bilateral negotiations.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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