Expert's view on Russia-India ties: VTB Bank New Delhi Branch director on the role of financial institutions in propping up trade and investment flows

Russia and India are countries with dynamic and stably developing economies, sizeable markets with constantly growing demand not only for raw materials, but also for goods and services with a high level of added values. India, in terms of industrial production, is among the Top-10 countries in the world, while its GDP India increases at average of 6-8% per year. Similarly, Russia is also enjoying the same buoyant economic growth. But despite some robust growth in the level of economic ties in the past few years, the overall state of affairs in bilateral trade contrasts sharply with the general indices of the ongoing positive dynamic economic changes both in Russia and India. 

The VTB Group has significant presence in India. In this regard, how would you describe your company’s activities, including investment prospects, in India?

The VTB Group came to India in 2005, when the bank opened its representative office in the country. In 2008, the first branch was opened in New Delhi, which was the first among the Russian financial institutions in the Indian capital. At the initial stage, the bank’s activity will be directed at serving companies with Russian capital that are registered in India, and also Indian companies working with Russia. As to strategic investments, their volumes and structure will depend on the investment needs of Russian companies. The branch office’s primary goal is to foster its own development together with development of Russian businesses in India. For instance, we have already considered a number of perspective projects that envisages the participation of Russian companies, but it is too early today to highlight their details.

The Russian and Indian governments have announced plans to increase bilateral trade turnover to $10bln by 2010. How can VTB help achieve this target?

The presence of the VTB Group in India creates favorable opportunities for large and average Russian companies to enter the Indian market. Specifically, from our side, I can say that we are ready to render Russian businesses all-round support in the establishment of contacts with Indian companies, structurization of their transactions with their Indian counterparts, simplification and acceleration of payments, including ruble-denominated ones, and also provide letters of credits and guaranties for operations. We see our main task in making India and its economy much clearer for Russian businesses.