Russia and India have been discussing for a while the establishment of a joint investment fund which would create new business opportunities for Indian and Russian companies in various economic sectors. Manufacturing is one the targeted industries for investments. The fund would gather 1 billion USD from both countries. Russia and India hope to deepen their economic ties through this investment fund. Our lawyers in Russia can explain the legislation related to investment funds in this country.
The Russian and the Indian authorities have started debating the idea of a joint investment fund in October 2016 when an agreement was also singed. The details were established last month and now Russia and India are very close to completing the procedures to set up the fund.
Russia will be represented by the Russian Direct Investment Fund (RDIF), while the National Indian Infrastructure Fund (NIIF) will be its counterpart. Among the projects Russian and Indian companies will be working on are related to various industries in both countries. Each country will contribute with 500 million USD to the fund which will serve companies in both countries expand their operations in the other country.
This is possible after India has modernized its infrastructure in order to accommodate investments from Russian companies.
Our Russian attorneys can assist foreign investors interested in starting businesses in this country.
The main purpose of the Russian party is to create more business opportunities and drive growth into local companies which can expand their investment in India. Among the projects Russian companies could develop in India, the RDIF mentions the energy sector, the petrochemicals and road transportation infrastructure. The RDIF also announced that several Russian banks are interested in supporting the joint fund, so the amount local companies could access could be greater than the initial sum projected.
Considering Russia and India have also signed a double tax treaty which enhances their trading relation, we invite you to contact us for information on this agreement.
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