Russian Investment: Powering India’s Manufacturing Boom

As India faces rising US tariffs, slowing FDI inflows, and supply chain uncertainty, Russia has emerged as an unexpected but crucial partner in India’s manufacturing growth. Russian investment, up over threefold in 2024–25, is anchoring India’s industrial ambitions with unmatched scale and consistency.

An agreement that goes beyond trade and commerce

Discounted Russian oil and gas are cushioning India’s factories from inflation and energy volatility, while technology transfers in steel, mining, power, and defence are driving India’s Make in India and Atmanirbhar Bharat missions. Together, the two nations are reshaping industrial and energy cooperation and creating tens of thousands of jobs in India across refineries, tech parks, defence units, and battery plants.

Russian Investments Surge Amid Global FDI Slowdown

Russia proved to be a trustworthy ally for a decade, even when most of the world turned its back on India.

Even as global FDI slows, Russian investment in India has hit record highs:

  • Russian FDI equity inflows surged over three times to $18.45 million in FY25 (April–December 2024), compared to $5.16 million the previous year.

  • Total Russian FDI is now at its highest in at least four years, bucking India’s overall declining FDI trend.

  • During the 25th India-Russia Intergovernmental Commission (IRIGC-TEC), both nations reaffirmed a $50 billion two-way investment target by 2025.

  • In energy, Russia has become India’s top foreign investor, driven by massive oil and gas partnerships.

The political backdrop is equally influential. With the US imposing tariffs of 25% or more on several Indian exports, India has sought new allies. Facing Western sanctions, Russia has responded eagerly, offering India not only capital but also critical resources and technology.

Big Bets: Oil, Energy, and Heavy Industry

Energy remains the cornerstone of Indo-Russian economic ties:

  • Rosneft’s $12.9 billion acquisition of Essar Oil secured control of Gujarat’s Vadinar refinery, India’s second-largest private refinery, now undergoing expansion and adding jobs.

  • In total, Rosneft and its partners have invested nearly $20 billion across India’s oil, fuel, and logistics infrastructure.

  • Gazprom supplies LNG and is exploring joint ventures in pipeline and storage development with Indian companies.

  • Indian firms now import Russian coal, fertilisers, and diamonds, fuelling manufacturing and agriculture.

  • Russian-backed fuel outlets are expanding rapidly in cities like Mumbai, Surat, and Ahmedabad.

  • Uralmash operates a joint venture plant providing steel and mining machinery, while Silovye Mashiny co-manufactures hydropower and thermal equipment for India’s energy sector.

Technology, Digital Innovation, and Startups

The Russian media agency also reported the importance of this alliance in terms of the money involved

Beyond heavy industry, Russian funds are making deep inroads into India’s tech ecosystem:

  • DST Global and Ru-Net have invested in major startups including Flipkart, Ola, Snapdeal, and Faasos.

  • Russian Global Capability Centres (GCCs) in Bengaluru, Hyderabad, and Pune employ Indian engineers in AI, automation, and cybersecurity.

  • Joint university-run ‘mirror labs’ focus on research in data science, cyber defence, and industrial technology.

  • NLC India, in partnership with a Russian-backed company, has launched lithium battery plants in Tamil Nadu, boosting India’s EV mission with lithium sourced from Africa.

 

These ventures reflect a deeper Russian approach: building long-term digital infrastructure and research capacity within India, not just investing for profit.

Infrastructure, Banking, and Defence: A Wider Russian Footprint

The Economic Times reported on Indo-Russia Strategic agreements

Russia’s economic role is now spreading across infrastructure, finance, and defence:

  • Sberbank and VTB Capital are financing Indian business expansions and infrastructure projects.

  • The Russian Direct Investment Fund (RDIF) plans to invest up to 100 billion rubles to help Russian companies expand in India.

  • In April 2025, both countries approved six new strategic projects focused on advanced manufacturing, digital infrastructure, and innovation.

  • Defence collaborations remain central: BrahMos Aerospace, a joint venture, produces supersonic missiles in India, turning the country into both a producer and exporter of cutting-edge defence technology.

  • Russia also remains key to India’s nuclear ambitions, particularly through the Kudankulam Nuclear Power Plant in Tamil Nadu, which continues to expand using Russian technology.

Jobs, Skills, and Workforce Growth

News clipping suggesting: Manufacturing sector primacy in global relations

Russian-backed projects are creating thousands of Indian jobs and advancing technical skill development. Engineers, technicians, and contractors are gaining experience in globally competitive environments across refineries, battery plants, and R&D centres.

New training centres, aligned with Russian manufacturing needs, are improving workforce employability while boosting local economies. Simultaneously, nearly 1 million Indian workers are being recruited for Russian industries, an unprecedented two-way workforce exchange.

Why Russia Matters Now

Russia has become indispensable to India’s industrial future for several reasons:

  • Stable and discounted oil and gas keep Indian factories globally competitive despite rising Western tariffs.

  • Technology transfer and hands-on learning from Russian experts elevate Indian plants to international standards.

  • Russia remains a reliable long-term investor, less influenced by political volatility.

  • Both governments have established sanction-proof trade frameworks, including rupee–ruble settlements and direct shipping routes like the Chennai–Vladivostok corridor, ensuring uninterrupted commerce.

The Road Ahead: Expanding the Partnership

The Indo-Russian alliance is poised for deeper integration:

  • Rosneft’s refinery expansion and wider fuel retail presence will inject more capital and create jobs.

  • New tech parks, logistics hubs, and R&D centres will extend opportunities beyond metro cities.

  • Battery manufacturing output is set to double with new lithium supply agreements.

  • Expanding defence and nuclear collaborations are expected to drive trade toward the $100 billion target by 2030.

Tata Indian Institute of Skills: Powering the Human Engine

As Russia strengthens India’s industrial base, the government is revamping skill development to match this rapid transformation. The Tata Indian Institute of Skills (IIS), a collaboration between the Ministry of Skill Development & Entrepreneurship and the Tata Trusts, stands at the heart of this mission.

Indian Institute of Skills is not only for skill development but also bridging academia and industry for real-world skill development.

Tata IIS is equipping India’s workforce with the technical proficiency, global outlook, and resilience required to capitalise on these emerging Indo-Russian partnerships. As Russian capital and technology weave into India’s growth fabric, IIS ensures the nation’s people are ready to lead it forward.

In today’s unpredictable global economy, this collaboration of capital, capability, and competence may well define India’s next manufacturing leap.

FAQs

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Tata IIS offers a short, comprehensive course in CNC operations with several key benefits, like industry-linked training, and witness practical experience through real-world industrial visits. Learning from industry experts who share valuable insights. Dedicated assistance in securing job opportunities after completion of the course. Work on live projects that simulate real manufacturing scenarios, enhancing your skills and confidence.

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Upon completing CNC operator training, you can pursue a wide range of job roles such as:

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Becoming a CNC operator typically requires hands-on training. Enrolling in a specialised CNC training program is a good place to start. For example, the Tata IIS CNC course offers comprehensive training that includes industrial visits, expert guest lectures, and placement support to ensure you’re ready for the workforce

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One needs to apply to the website of the chosen location – IIS Mumbai, IIS Ahmedabad – after which there will be an entrance test. If you succeed, your admission will be confirmed by paying the minimal admission fees.   

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One needs to apply to the choice of location’s website – IIS Mumbai, IIS Ahmedabad, after which there will be an entrance test. If you succeed, your admission will be confirmed by paying the minimal admission fees.  

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