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India, Russia to set up $1 bn fund to promote business:Nirmala

Press Trust of India  |  Chennai 

and are setting up a USD 1 billion fund to promote mutual in infrastructure and technology projects, Commerce and Industry Minister has said.

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

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

Sitharaman elaborated upon other measures being taken by and to scale up their economic engagement and to boost bilateral trade and investment.

As part of these initiatives, the Russia CEO Forum will hold its meeting this year at a mutually convenient date. The forum was constituted in St Petersburg in June 2016.

Foreign Direct Investment (FDI) from Russia is estimated at USD 1.2 billion till date while Indian investment in Russia is around USD 4.9 billion.

"There is tremendous potential for enhancing such investments," the minister said, adding that initiatives like Make-in-India would catalyse Russian investment in several Indian sectors including Defence production.

"The Make-in-India initiative was launched by the government in order to encourage businesses to manufacture products in the country, creating additional jobs for local population. This is a major drive to foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturing infrastructure," she said.

India and Russia are engaged in robust cooperation in the energy sector, including collaborations in civil nuclear energy, hydrocarbons and renewable energy.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 17 2017. 15:48 IST