NEW DELHI (Sputnik) — India's Srei Infrastructure Finance on Thursday announced the signing of a memorandum of understanding (MoU) with Russian state development institution Vnesheconombank to create a $200 million IT and Innovation Fund.
The fund will serve as a two-way bridge between Indian and Russian markets and create opportunities for technology cooperation, Hemant Kanoria, chairman and managing director of Srei, said in a statement.
"The IT and Innovation Fund will promote India-Russian cooperation in the area of IT technologies and innovation. Srei and Vnesheconombank, through this fund, will explore investments opportunities in technology companies in Russia, India and other selected regions," Seri's statement reads.
Srei is a multi-sector infrastructure conglomerate with around $5.5 billion of consolidated assets under its management, while Vnesheconombank operates to enhance the competitiveness of the Russian economy, diversify it and stimulate investment.
With India, Russia trade being less than $10 billion annually, and primarily comprising defense sector cooperation at the public sector level, it needs a major boost and a shift towards private sector cooperation. Russian President Vladimir Putin and Indian Prime Minister Narendra Modi have agreed to enhance bilateral trade to $30 billion by 2025.
"Trade is like electricity and flows in a direction with least resistance. The enhanced focus on improving trade and commerce ties between the two countries is beginning to show fruit like Essar-Rosneft deal and now this one. There also have been successive high-profile visits on both sides, which are bound to give impetus to trade. There are several other areas like gems and jewelry, pharmaceutical and IT where more synergy can be developed," Nandan Unnikrishnan, Vice-President, at the New Delhi-based Observer Research Foundation, told Sputnik.
With rising protectionism in the US and anti-immigrant sentiment under the presidency of Donald Trump, Indian IT companies need to expand into new markets.
During his visit to India in March this year, Russian Minister of Trade and Industry Denis Manturov had said Moscow is eager to welcome highly-skilled Indian talent, and that they will aid the workforce with all possible facilities.
