Russian President Vladimir Putin commended the Indian government for creating a conducive environment for small and medium-sized enterprises (SMEs) and lauded Prime Minister Narendra Modi’s “Make in India” initiative. Speaking at the VTB Investment Forum in Moscow, Putin highlighted parallels between Russia’s import substitution strategy and India’s economic policies, emphasizing their shared focus on fostering local industries and prioritizing national interests.
Key Highlights of Putin’s Address
- India’s Economic Leadership:
- Putin recognized India’s stable economic policies under PM Modi’s leadership, which have been instrumental in attracting investments.
- He praised the “Make in India” initiative, describing it as a successful framework for industrial growth and local manufacturing.
- “The Indian leadership has been pursuing an ‘India comes first’ policy, and investments in India are proving profitable,” Putin said.
- Russia’s Readiness for Collaboration:
- Putin expressed Russia’s willingness to establish manufacturing facilities in India to align with the “Make in India” program.
- He noted the potential for increased bilateral trade and investment, particularly in sectors like technology, agriculture, and high-tech industries.
- Focus on SMEs and BRICS Collaboration:
- The Russian President emphasized the importance of SME growth as a foundation for economic resilience within BRICS and BRICS+ nations.
- He called for the development of a fast dispute resolution mechanism to support SMEs in cross-border dealings.
- Import Substitution in Russia:
- Putin highlighted the success of Russia’s import substitution strategy, which has fostered the growth of new Russian brands in sectors such as consumer goods, IT, high-tech, and agriculture.
- “In agriculture, we have gone from importing grain worth $35 billion in 1988 to exporting $66 billion last year—a testament to our producers’ and farmers’ efforts,” he noted.
- BRICS Cooperation:
- Putin advocated for enhanced collaboration among BRICS nations in trade, manufacturing, and SME development.
- He urged BRICS members to identify strategic areas for cooperation ahead of the 2024 BRICS Summit in Brazil, signaling a continued focus on economic synergy among member nations.
Implications for India-Russia Relations
Putin’s remarks underline the growing convergence between India and Russia in promoting domestic industries and fostering regional economic resilience. The potential establishment of Russian manufacturing sites in India could strengthen bilateral ties, enhance trade volumes, and create new opportunities in technology, agriculture, and infrastructure sectors.
As BRICS continues to expand its economic agenda, closer India-Russia collaboration on SME growth and innovation could play a pivotal role in shaping the group’s global economic impact.