Russia Keen to Make Passenger Plane Parts in IndiaRussia is keen to diversify its manufacturing presence in India to civil aviation and could expand operations with its local partner Mahindra Aerospace, said the visiting Trade and Industry Minister Denis Manturov. The Indian conglomerate is being considered for partnership for manufacturing parts of the IRKUT-MC21 civil aviation aircraft.
"We have a very good example of a modern aircraft, the Sukhoi Superjet project. We are open to both exporting it to the Indian market as well as localizing some of the components production. We are working on another civil aviation project, the MC21 aircraft, which is scheduled to have its first flight soon, and we are having talks with Indian company Mahindra & Mahindra," PTI quoted Manturov who spoke to reporters at the International Engineering Sourcing Show (IESS) organised by EEPC India in Chennai along with Indian Commerce Minister Nirmala Sitharaman.
"When it comes to defense cooperation, there is no other country like Russia for India for providing access to the latest technology and joint production,” Nandan Unnikrishnan, Senior Fellow and Vice-President at the New Delhi-based Observer Research Foundation told Sputnik.
Mahindra Aerospace is already partnering with Russia in the manufacture of the Sukhoi Superjet.
In another development which indicates the two countries are serious about scaling up bilateral trade and investment, Russia and India announced the setting up of a $1 billion fund to promote mutual investments in infrastructure and technology projects. Both sides will contribute 50% to the fund, said Sitharaman, addressing the India-Russia Business Forum at the ongoing IESS event.
The funds from Russia would be routed through the Russian Direct Investment Fund (RDIF), while the Indian capital will come from the National Investment and Infrastructure Fund. Sitharaman also talked about Russia pitching in for the ‘Make in India’ initiative.
Experts reckon Russian investments under Make in India initiative, along with the International North-South Transport Corridor, has the potential to scale up bilateral trade and investment to new heights, including getting to the $30 billion target by 2025 set by Indian Prime Minister Narendra Modi and Russian President Vladimir Putin.
"It is an all-weather relationship and continues to blossom well. It is now time to take it to the next logical level by forging partnerships in the more visible private sectors where Russia can directly contribute in job creation and fostering innovation. This may not be easy as it calls for outsourcing which means loss of jobs at home, especially in an environment where protectionist rhetoric is taking roots in the West," added Unnikrishnan.