Russia Targets India for Strategic Manufacturing to Meet Domestic Needs

Russia is specifically focusing on setting up manufacturing facilities in India in order to meet its significant domestic demands. The plan includes obtaining crucial railway parts and materials straight from Indian manufacturing facilities. During a press briefing at TMH's Moscow headquarters, Kirill Lipa, CEO, emphasized the appeal of India's current investment opportunities.

"The current interest rate in India is very different from other countries," Lipa stated.

He highlighted the company's commitment to investing in building various facilities that can manufacture components for the Russian market. This commitment strengthens the strong relationship between Indian suppliers and Russian railway companies. Lipa acknowledged current supply agreements and showed optimism in increasing the amount of imports from India.

An important achievement in this partnership is TMH's participation in Kinet Railway Solutions, which has landed a major deal worth around Rs 55,000 crore with Indian Railways. The agreement includes manufacturing 1,920 Vande Bharat sleeper coaches and offering upkeep services for a period of 35 years.

Lipa stated that the Vande Bharat project would not be affected by the current international sanctions. He verified that the company found suppliers in India and other countries that are in line with India-Russia relationships, without depending on Russian supply chains.

This new strategic alliance highlights the increasing economic and industrial collaboration between India and Russia in the railway manufacturing industry, potentially creating opportunities for bilateral trade and technology sharing.