Modi invites Russian firms in Indian defence production

St. Petersburg, June 1 (IANS) Prime Minister Narendra Modi on Thursday invited Russian companies to invest in India by forming joint ventures, saying opportunities for them have opened up, especially in defence production, through recent policy initiatives.

"I invite Russian companies to start joint ventures with Indian businesses. In the defence sector, we have recently framed rules to precisely facilitate such partnerships," Modi said, while addressing a meeting here with CEOs of both the countries, referring to the Strategic Partnership policy in defence manufacturing approved by New Delhi last month.

"I urge Russian companies to examine this policy carefully to see how they can take advantage of this new policy," he added.

The Strategic Partnership policy envisages the establishment of long-term strategic partnerships with qualified Indian industry majors, wherein the Indian industry partners would tie up with global original equipment manufacturers, to seek technology transfer and manufacturing know-how to set up domestic manufacturing infrastructure and supply chains in defence manufacturing.

It was finalised by the Defence Acquisition Council on May 20, and the Union Cabinet took note of it on May 24.

Russia has been a traditional supplier of defence equipment to India.

The Prime Minister mentioned in this regard that the presence of Russian companies in India has been steadily growing over the years.

Bilateral trade is currently worth around $7 billion.

Modi arrived here on Wednesday evening on the third leg of his four-nation European tour.

On Friday, Modi will for the first time attend the St. Petersburg International Economic Forum, a business event.