Modi invites Russian firms to invest in defence, other sectors

Modi asked Russian firms to "come work with Indian companies" in defence sector

Prime Minister Narendra Modi on Thursday invited Russian companies to partner Indian firms in setting up manufacturing facilities to make high-tech defence equipment in India.

Addressing chief executives of the two countries after an annual bilateral summit in Russia, Modi said India had last month approved a policy to allow local private companies to work with foreign players to manufacture defence equipment to cut reliance on imports.

“India is sixth biggest manufacturer in the world and we want to raise the share of manufacturing in GDP (gross domestic product) to 25 per cent from 16 per cent,” he said. 

The policy allows the entry of private companies into the manufacture of submarines, fighter aircraft and armoured vehicles through foreign partnerships.

Modi, who wants to reverse India's dependence on imports by building a local manufacturing industry, asked Russian firms to "come work with Indian companies" in defence.

The just approved policy allows Indian companies to partner with global defence majors "to seek technology transfers and manufacturing know-how to set up domestic manufacturing infrastructure and supply chains." With Russian President Putin by his side, Modi said the 70-year old Indo-Russian relations are based on trust.

"Relations have broadened and stood the test of time," he said adding Russia has stood by India at international forums.