Russia, India Collaborate On Train Manufacturing

Russia is set foray in India’s locomotive industry as both the nations are likely to sign a pact on rail manufacturing. As per a TOI report Russia is looking forward to investing in train and component manufacturing facilities in India. The move will give thrust to Russia’s growing domestic demand.

Why does Russia want to invest in Indian train production?

Kirill Lipa, the CEO of TMH, listed three reasons for Russia’s interest in India

1. He said, “The current interest rate in India is very different from other countries. So, we are interested and ready to invest in India.”

2. “We are interested in developing several facilities in India, which are capable of providing certain components,” Lipa said.

3. He said, “We think some of them can be supplied to the Russian market as well.”

Historically, Russia and India have been good trading partners. Moreover, TMH holds a majority stake in Kinet Railway Solutions , which holds a ₹55,000 contract with Indian Railways to produce 1,920 Vande Bharat sleeper coaches in 35 years.