Indian businesses are determined to develop relations with Russia

The conference entitled “Russia – a window for entering the global market. India welcomes the world” was held on March 16 in the Moscow Chamber of Commerce and Industry (MCCI).

The participants of this conference were introduced to the “Make in India” Program, aimed at encouraging new investments to come into that country.

Representatives of Indian private and state companies discussed with Russian businessmen various opportunities for the realization of joint projects. 

In his opening speech at the conference, the Vice President of MCCI Suren Vardanyan said that relations between the Moscow Chamber of Commerce and Industry and India are developing rapidly. The MCCI has established the Commission for Cooperation with Partners in India, whose members include both Russian and Indian companies. He noted that the Business Council for Cooperation with India of the RF Chamber of Commerce and Industry under the leadership of Sergey Cheremin, who heads the Department for External Economic and International Relations of Moscow, is working on providing practical assistance during the realization of joint projects, including in the field of finance, lending, and development of logistics chains.

Kumar Manish, Deputy Chairman of the MCCI’s Commission for International Cooperation with Partners in India and CEO of the Solteks Group, noted that collaborative opportunities are more extensive today than ever before – and both parties should take advantage of this. “India – is a country of intelligent and educated people, its economy can provide good returns on investments.”
G. Balasubramanian, Deputy Head of Mission of the Embassy of India in the Russian Federation, made a presentation of the country’s potentials: India is the only country in the world where economic growth remains at a very high level – 7.5%. Moreover, the labor force potential of the country is very high, 65% of the population is under the age of 50. During the latest BRICS Summit and the meeting between the Russian President and Prime Minister of India, it was decided to intensify cooperation, especially in areas such as pharmaceuticals, the oil sector, IT, biotechnology, shipbuilding, the development of railway transport, tourism, etc.

Mr. Balasubramanian noted that these days India and Russia have already developed close ties, with many Indian companies transferring technologies to their Russian partners.

Yevgeny Dridze, Deputy Head of the Moscow Department of International and External Economic Relations, speaking at the conference said: “We are closely watching the development of relations – for now, in terms of turnover volume, this is not close to the level that is possible to achieve between our two countries. Typically, those countries that sell a lot of products and services, also lead when it comes to making investments. However, India is the only country that invests more in Russia that it sells to us. Nevertheless, I would like to somehow see the current trade situation change for the better. The activities of the Business Council are aimed at providing practical assistance during the implementation of business projects. This, in particular, can help the two countries move to making direct settlements in rubles and rupees.”

The reason for this low trade turnover, according to Mr. Dridze is all too often due to lack of financing opportunities. Another reason is the difficulties encountered during direct interaction between businesses – such as the differences in cultures, the need for mediators when establishing relations. That is why current B2B-platforms must be better developed.

Amit Telang, First Secretary of the Indian Embassy, made a presentation about the “Make in India” Program for Foreign Investors. He noted that already today, India has implemented favorable tax conditions, simplified its bureaucratic procedures, being developed are a one-window system and opportunities for obtaining all permits and certificates on-line. Mr. Telang noted that such Russian companies as Rosneft, Russian Helicopters, Russian Railways, and Renova are already active in the Indian market.

Salil Kumar, representative of the major engineering company EPI, noted that Russian partners can now participate in tenders, which may be open, limited, or one-time (carried out for a specific project). To participate in a tender, a company needs to meet a list of criteria that can be viewed on the websites of respective state corporations, as well as see the maximum price of each project. 
Conference participants also discussed the opportunities available for project financing, technology transfer, and looked at individual cases of joint projects already being implemented by Indian and Russian partners.

 

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