Russia likely to join India for DMIC job

Dec 22 2012, 02:43 IST
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SummaryIndia is likely to invite Russia during the forthcoming bilateral summit to participate in its promising Delhi-Mumbai industrial corridor development programme worth $90 billion.

India is likely to invite Russia during the forthcoming bilateral summit to participate in its promising Delhi-Mumbai industrial corridor (DMIC) development programme worth $90 billion. And, on the Russian side, Indian participation in the massive modernisation programme of its pharmaceutical sector, is invited.

So far, the DMIC project has been a bilateral affair between India and Japan. This is probably the first time when India has invited investment in the DMIC project from a third country at such a high level. Senior officials told FE, “The progress of our economies in recent years has opened new vistas for cooperation, which will further intensify. There is huge untapped potential for investments in automobiles, food processing, chemicals, fertilisers, civil aviation, metallurgy, agriculture, communication technology, gems and jewellery and services, hydrocarbon infrastructure and steel.”

Despite global economic difficulties, Indo-Russian trade is expected to touch $12 billion by the end of this year. The 13th annual summit between the two countries will mark the culmination of a series of high-level exchanges between the two countries during the year.

Leading a high-powered delegation, Russian President Vladmir Putin will arrive in New Delhi for an official visit on December 23. India and Russia will sign “about a dozen agreements” during the visit, providing powerful impetus to the strategic partnership between the two countries, said Alexander Kadakin, Russian ambassador to India.

According to sources, State Bank of India and the Russian Agency for Direct Investments are likely to sign an MoU during the upcoming summit in order to provide the much-needed boost to bilateral investments. Also on the cards is inking of Joint Private Public Investment Fund.

Prof Arun Mohanty, director, Eurasian Foundation, JNU, told FE, “Despite the fact that India and Russia have large and complementary economies, their bilateral investments have stagnated at a low level. A host of agreements has failed to raise mutual investments to the desired level over the years.”

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