'India, Russia to set up $1 b fund to promote biz'

Chennai: India and Russia are setting up a $1 billion fund to promote mutual investments in infrastructure and technology projects, Commerce and Industry Minister Nirmala Sitharaman has said.

Both the countries would contribute $500 million to the fund, Sitharaman said while addressing India-Russia Business Forum at the ongoing International Engineering Sourcing Show (IESS) here.

While the Russian funds would be channeled through Russian Direct Investment Fund (RDIF), Indian contribution will be accrued from National Investment and Infrastructure Fund.

She elaborated upon other measures being taken by Russia and India to scale up their economic engagement and to boost bilateral trade and investment.
Foreign Direct Investment (FDI) from Russia is estimated at $1.2 billion till date while Indian investment in Russia is around $4.9 billion.

India and Russia are engaged in robust cooperation in the energy sector.

Share defence tech
India has asked Russia to adopt a liberal approach in sharing technology for components of major defence platforms saying it was critical to keep them in operational readiness as most of its weapons systems are of Russian-origin.

Calling for deeper bilateral engagement in defence production, Defence Minister Arun Jaitley said Russia should at least facilitate manufacturing of parts and sub systems which are needed in large numbers and where the requirement is recurring in nature.

Two agreements were signed at the conference between India’s Hindustan Aeronautics (HAL) and Russia’s United Aircraft Corporation and United Engine Corporation for long term supply of spares and technical assistance for Sukhoi 30MKI aircraft for five years.
PTI