New Delhi, Oct 29 (KNN) India intends to create a vibrant startup eco-system and Russia can actively partner by providing technology, assistance in setting up incubation centers and by actively investing in startups, said the Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu during his meeting with a high level Russian business delegation in New Delhi.

They discussed about increasing investments and business engagements between India and Russia.

There is immense potential for the two countries to further expand economic ties and move beyond buyer – seller relationship, the Minister said this adding that in order to facilitate this India has set up a one stop shop for Russian companies in Invest India called Russia Plus, which will fast track investments.

There is possibility for Russian investments in Delhi-Mumbai industrial corridor, smart cities, railways, public transport, sanitation and low cost housing.

Commerce Minister said that Russia can be a valuable market in information technology and services sector considering IT and services are India’s largest exports.

He added that Indian companies may also explore links with Russian companies in software for the manufacturing sector.

India’s pharma exports to Russia constitute a sizable chunk but possibilities of joint investments are being considered by leading Indian pharma companies under Russia’s Pharma 2020 programme.

Commerce Minister further said that although Russia is a primary source of defence equipment supply to India, ample opportunities have further opened up for both countries with the opening of FDI in defence production in India.

He said that Russian companies may consider investing in a dedicated industrial park for defence manufacturing under the new norms to supply parts to helicopters, nuclear reactors and solar panels.

During the meeting the possibility of potential cooperation in areas of oil and gas sector, aerospace, ports and shipping and railways and also in the sectors of fertilizers, gems and jewelry and tourism were discussed.

Commerce Minister also explained the procedure and policy for establishing green field and brown field airports in tier-II and III cities in India. Russian investments may also be explored in the pilot training center coming up in the country. Suresh Prabhu invited Russian aerospace companies to participate in the global aviation summit to be held in India in January 2019.

In 2017 total trade between India and Russia was USD10.13 billion. Imports to Russia stood atUSD 8.04 billion and exports from India was USD 2.08 billion.

Commerce Minister emphasized that all efforts should be made to narrow down the trade deficit. One of the major reasons for having low trade is due to trade barriers like banking, sanitary, language barrier and visa issues.

Russia has invested USD 1.2 billion in India between 2000 and 2017. In the 18th annual summit that took place in St. Petersburg between Prime Minister of India and President of Russia in 2017, it was decided to increase it by 10 times in 6 to 7 years.

The key areas of Russian investments have been oil and gas, defence equipment supplies, power and energy and large scale infrastructure project.