Russian President Vladimir Putin has commended India’s robust efforts to bolster small and medium-sized enterprises (SMEs) through the “Make in India” initiative, hailing it as a visionary economic strategy led by Prime Minister Narendra Modi. Speaking at the VTB Investment Forum in Moscow, Putin drew parallels between India’s initiative and Russia’s own import substitution program, underscoring their shared goals of self-reliance and economic resilience.
Putin expressed Russia’s willingness to collaborate further with India, particularly in manufacturing. He praised the Indian government’s consistent efforts to create a stable and business-friendly environment, which he believes has positioned India as a lucrative destination for investment.
“Prime Minister Modi has a similar program called Make in India. We are also ready to place our manufacturing site in India. The Indian leadership’s ‘India first’ policy ensures stable conditions, making investments in India profitable,” Putin said during the forum.
SMEs as growth drivers in BRICS
The Russian leader highlighted the significance of SMEs as drivers of economic growth, especially within the BRICS framework. He called for enhanced cooperation among BRICS and BRICS+ nations to create a supportive ecosystem for SMEs, including streamlined dispute resolution mechanisms for businesses operating across these emerging economies.
He also noted the success of Russia’s import substitution program, which has spurred the rise of domestic brands in the wake of Western businesses exiting the Russian market. Sectors such as consumer goods, IT, high-tech industries, and agriculture have seen significant growth, showcasing the resilience of local manufacturers.
“For us, the emergence of new Russian brands replacing Western ones holds special relevance. Our local manufacturers have not only managed to succeed in consumer goods but have also excelled in IT and high-tech industries,” Putin said.
Russian success stories and agricultural triumphs
Putin highlighted Russia’s achievements in agriculture as a testament to the country’s evolving SME sector. Reflecting on a remarkable turnaround, he contrasted the Soviet Union’s reliance on grain imports in 1988—amounting to $35 billion—with Russia’s current position as a major grain exporter. In 2023, the nation exported $66 billion worth of grain, underscoring the contributions of its farmers and agricultural producers.
“Today, Russian farmers and producers are at the forefront of a thriving agricultural sector. The expansion of high-tech opportunities and export channels is crucial for sustaining this momentum,” he stated.
Strengthening ties with india
Acknowledging India’s proactive stance in fostering innovation and supporting SMEs, Putin highlighted potential synergies between the two nations. The Russian leader’s endorsement of Make in India reflects growing economic ties and mutual interest in leveraging each other’s strengths to achieve long-term growth.
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Putin’s remarks come at a time when India’s SME sector is playing an increasingly vital role in the country’s economic landscape. The Make in India initiative, launched in 2014, seeks to transform India into a global manufacturing hub, creating millions of jobs and enhancing the country’s export capabilities. By aligning with India’s initiative, Russia aims to establish itself as a key partner in India’s growth story.
A call for deeper collaboration within BRICS
Putin also emphasised the need for BRICS nations to identify priority areas for collaboration, particularly in the SME sector. With Brazil set to chair the next BRICS summit in 2024, he urged the bloc to develop actionable plans for fostering innovation and facilitating trade among member nations.
“I encourage our BRICS colleagues to assess the main areas of cooperation and ensure that SMEs remain central to our discussions. This will be a key focus during the upcoming summit in Brazil,” Putin remarked.
Strengthening economic partnerships
Putin’s praise for Make in India highlights the broader implications of India’s economic strategies on global partnerships. By fostering collaboration and enhancing opportunities for SMEs, India and Russia are poised to build a stronger economic alliance, setting an example for other nations within the BRICS framework.
As geopolitical shifts continue to reshape global trade dynamics, initiatives like Make in India and Russia’s import substitution program underline the importance of self-reliance and strategic partnerships in achieving sustainable growth.
