Putin now wants Indian investment

MUMBAI, OCT 5: The chief of the erstwhile communist citadel is now turning to India for investments. Russian President Vladimir Putin on T...

MUMBAI, OCT 5: The chief of the erstwhile communist citadel is now turning to India for investments. Russian President Vladimir Putin on Thursday urged Indian trade and industry to invest in the food products, pharmaceuticals, services, electronics and information technology, biotechnology and civil aviation sectors.

“Russia has revamped the bureaucracy and has set up common legal system besides paring the customs duty from 12 rates to a single rate,” he said here while addressing a meeting jointly organised by the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

In the financial sector, Putin wanted assistance of India in developing the banking sector, stock markets and also to ensure efficient utilisation of savings for the progress of the country.

“The bilateral relationship between the two countries had stood the test of time and not caused harm to anybody,” he said. Explaining the economic situation in Russia, Putin said the country had witnessed a economic growth of seven per cent and inflation was ruling around three per cent while currency and gold reserves had grown by 1.5 times in the last one year.

Anti-dumping measures initiated by India against Russian goods was a minor irritant in the trade ties and called upon the Indian government to resolve the issue. Putin said the transportation agreement signed between Russia and India would lead to the development of North-South transportation corridor that would spur trade.

He agreed to the suggestion from a participant to set up a joint fund for the development of civil aviation industry in India and also become competitive in the sector by extending credit to Indian buyers.

Putin said all help would be extended by his country in modernising and upgrading steel plants in India set up with Russian help. “We are not averse to supporting any Russian private steel company’s attempt to acquire a stake in the ailing India Iron and Steel Company (IISCO) but we will intervene directly,” he said.

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Russia would also provide all assistance to India in executing the Kudankulam (Tamil Nadu) nuclear power project of Nuclear Power Corporation, the President said.

Earlier, Finance Minister Yashwant Sinha said strategic ties between the two countries must have economic component besides political and defence alliance so that bilateral relationship was comprehensive.

Tie-ups in the financial sector would be the vehicle for forging closer economic co-operation between the two nations, Sinha said. The rupee debt agreement reached between the two nations, whereby India pays Russia Rs 3,000 crore every year over a period of time, had functioned very well but had unfortunately become a hindrance for expanding economic relationship.

“The rupee balances are going to come down over the next few years and we have to find new ways to expand trade between the two sides,” the finance minister said.