Russian President Vladimir Putin has expressed his willingness to establish manufacturing operations in India, signaling a deepening of economic ties between the two countries. This comes as bilateral trade between India and Russia reached an all-time high of $66 billion in 2024, marking a significant fivefold increase over the past five years. The two nations are targeting a trade volume of $100 billion by 2030, with several sectors poised for enhanced collaboration, including railways, pharmaceuticals, information technology, aviation, and cybersecurity.

Speaking at the 15th VTB Russia Calling Investment Forum, President Putin praised India’s rapid economic growth and stability, particularly under the leadership of Prime Minister Narendra Modi. He emphasized the conducive environment the Indian government has created for business, particularly for small and medium-sized enterprises (SMEs).

"Prime Minister Modi has a similar program called Make in India. We are also ready to set up our manufacturing operations in India. The Indian government, under the Prime Minister's leadership, has been creating stable conditions, driven by a policy of putting India first. We believe that investing in India is profitable," Putin said, acknowledging the significant progress India has made in promoting economic reforms and business opportunities.

Putin drew parallels between India's "Make in India" initiative and Russia's own import substitution program. Both are geared towards boosting domestic manufacturing and reducing reliance on foreign imports. The Russian President highlighted the mutual benefits of closer economic cooperation, noting that Russian investments in India would not only enhance trade but also help stimulate manufacturing growth across various industries.

Investment in Key Sectors

A key highlight of Putin’s speech was the mention of Rosneft, Russia's state-owned oil giant, which has recently made a landmark $20 billion investment in India. This is a clear signal of Russia's growing confidence in India’s economic landscape. Putin expressed strong optimism about the profitability of Russian investments in India, pointing to the robust growth prospects in the country’s evolving market.

"Investments in India are profitable," he reiterated, reinforcing his support for further economic integration between the two countries. He also referred to Russia's successful efforts to replace Western brands in the Russian market, following the exit of many multinational companies due to geopolitical tensions. This has allowed for the rise of new Russian brands in consumer goods, IT, high-tech industries, and agriculture—sectors that could see further collaboration with India.

Strengthening BRICS Cooperation

Beyond India, Putin also addressed the broader BRICS (Brazil, Russia, India, China, and South Africa) economic grouping, underscoring the importance of collaboration within the bloc to foster SME growth and facilitate smoother business transactions, especially in the Global South. He stressed that BRICS nations must focus on identifying key areas for cooperation, particularly in financing development projects and enhancing trade.

Looking ahead to the 2025 BRICS summit in Brazil, Putin called on member nations to evaluate the current situation in key sectors and emphasized the importance of a collective approach to economic challenges. He further advocated for the creation of an investment platform within BRICS, which could serve as a crucial instrument for supporting the economies of the Global South and East, particularly in financing key projects.

"I urge my BRICS colleagues to evaluate the current situation in key areas of cooperation, and we will certainly bring this to the attention of our Brazilian counterparts, who will be leading BRICS next year," Putin added, highlighting the strategic role of BRICS in global economic support.