Russia, which is facing sanctions by the western countries due to the ongoing conflict with Ukraine, is likely to offer incentives to attract India Inc investments especially in the sectors like information technology and FMCG, said Alexey Valeryevich Valkov, Director of the St. Petersburg International Economic Forum.
“There is a huge opportunity for the Indian companies to have business in Russia. There is a vacant space. The space has been vacated by European and American companies,” Valkov told DH in an interview.
He said Russian government agencies are “working very actively” and will finalise a plan to offer incentives to attract investment from Indian companies.
When asked about the sectors in which Russia is keen to attract Indian investments, Valkov said, “There is huge opportunity in the sectors like MSMEs, agro and FMCG products, fertilisers, transport and digital sector.”
Valkov claimed that the economic situation in Russia was stable and offered good opportunities for the Indian companies in several sectors. “Right now the Russian economy is stable, currency is stable. This is the right time. We are inviting all Indian companies.”
India-Russia trade hit record high in the financial year ended March 2023. India’s imports from Russia surged by 396.44% year-on-year to over $46 billion in 2022-23, fuelled by discounted oil shipments, as per the latest data released by the Ministry of Commerce and Industry.
In the financial year ended March 2023, Russia emerged as the fourth largest import source for India, behind China, UAE and the US from the 16th position in 2021-22. Russia accounted for 6.5% of India’s total import of $714.24 billion in 2022-23. In 2021-22, it stood at 1.6%.
However, India’s export to Russia remains sluggish leading to a sharp jump in trade gap.
On trade gaps, Valkov said there are huge opportunities to increase India’s exports. “The focus is on investment as well as trade. They complement each other,” he said.