Why the Russian businessman is bullish on India? | Foreign investors have increased confidence in India.

Why the Russian businessman is bullish on India?

India-Russia friendship is going to get stronger now. Both the countries are walking on the path of this friendship. Despite all kinds of restrictions, Russia and India seem to be increasing their relationship. The confidence of foreign investors in India remains intact. Big foreign investors and businessmen see India as a big market. India is a country with a population of 133 crores and the whole world wants to capture such a huge market.

The purchasing power of the people in India is continuously increasing. In such a situation, a big Russian businessman has planned to invest $ 150 billion in India. Let us tell you in detail what is this whole deal, and what will India benefit from it. Oleg Deripaska, the owner of a large aluminum company in Russia, is planning to make a big investment in India in the next decade. This investment will be worth $ 150 billion.

Deripaska is an aluminum tycoon in Russia and he is considered close to Russian President Vladimir Putin. Deripaska is the president of one of the largest industrial groups in Russia. He is the founder of Basic Elements. Deripaska is also the chairman of En+ Group, a Russian energy company. The same Deripaska is also the head of United Company Rusal, the world's second-largest aluminum maker. 

Deripaska is pushing for similar relations with Russia and India. As Russia's relations with European countries used to be to reduce the damage that Russia has suffered due to sanctions from the war with Ukraine. For this, now the Directorate Agreement between India and Russia will need to accelerate the process of customs with new logistics route development and related infrastructure. 

Deripaska is also talking of considering giving both parties access to debt and capital markets. The central bank of the two countries will also need to streamline the currency swap process to strengthen economic and trade ties. A currency swap is an agreement or contract between two countries to exchange currency with predetermined terms and conditions. 

For the past several years, Russia's economy has focused entirely on the European market. The bilateral relations between the two remain good and strong. If we talk about business between the two, then it remains between $ 750 billion to $ 1 trillion. But due to the Russia-Ukraine war, all this was reversed. Many countries have imposed sanctions on Russia. Trade and commerce have been badly affected. 

Now the economy there is completely crumbling. Investors and businessmen are now changing their stance. All the investors are looking for the option of their investment in other countries, so Russia wants to increase its old business relationship with India. Russia wants to work to increase connectivity and strengthen capital markets and financial infrastructure in India. 

It has already started. Let us tell you that there is still a continuous war going on between Russia and Ukraine and it doesn't seem likely to end soon. Western countries have imposed sanctions on Russia. In such a situation, both countries are trying to find a middle ground. Russia and India have had friendly relations since time immemorial. 

India and Russia share friendly relations in terms of culture, tourism, and education and now it is being extended further for economic matters. Russia has promised to give crude oil to India at a low cost. India used to import less than 2% crude oil from Russia earlier. At the same time, with this move, India bought oil from Russia in rubles. 

This benefited India significantly as India is dependent on foreign imports for 85% of its oil requirement. On the other hand, India also wants to increase its exports. In such a situation, both India and Russia can be useful to each other. India can look towards the Russian market for their product. At the same time, Russian companies can use India as a manufacturing hub for their products or equipment.

Foreign investors have increased confidence in India:

The fear of recession is deepening all over the world. Technically recession has been declared in America. The pace of US economic growth has been falling for two consecutive quarters. In such a situation, the trust of the world is big in India. Especially foreign investors are investing a lot of money in India. In the financial year 2022, India has received the highest foreign investment so far. 

Foreign investment of ₹6,00,000 crores came to India in the financial year 2022. This is the highest ever foreign investment in any financial year. The maximum foreign investment has increased in the manufacturing sector. Foreign investment in manufacturing grew 76% to ₹1,58,000 crore in FY22. Foreign investment of ₹89766 crores came in the manufacturing sector in the financial year 2021.

The increase in foreign investment is a good sign for the Indian economy. This shows how much foreign investors trust India. When the fear of recession deepened in the whole world, then foreign investors are looking bullish on India. Most of the foreign money in India is coming through Singapore. Singapore's foreign investment accounted for 27%, while the US accounted for 18%, Mauritius 16%, the Netherlands 8%, and Switzerland 3.7%.

Five countries account for 65% of foreign investment. It is being told that due to the liberal policies of the Modi government, foreign investment in India has increased. The government has relaxed FDI policies in insurance, defense, telecom, and e-commerce. 100% FDI has been allowed in these sectors under the automatic route. Whereas foreign investment in the manufacturing sector has increased, FDI in real estate has decreased. 

Foreign investment in real estate declined by 27% to $966 million in the first quarter of the current financial year, according to a JLL India report. Whereas in the first quarter of last year, foreign investment came in at $ 1329 million. Foreign investors have a big hand in moving the economy forward. 

Foreign investment creates new employment opportunities. Millions of people get employment. At this time India is in dire need of foreign investment to accelerate the economy.

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