Historic Allies, Modern Goals: Russia Turns To India For Railway Manufacturing

India and Russia are set to deepen their decades-long partnership with a new agreement focused on rail manufacturing, marking another milestone in their strong business and diplomatic ties.

According to a report by The Times of India, Russia plans to invest in Indian train and component manufacturing to meet its growing domestic needs.

The move follows a recent expression of interest from Russian railway giant Transmashholding (TMH), which is keen to establish manufacturing facilities in India.

A senior official from the Indian Railways ministry confirmed the development, stating, "They have huge domestic requirements and for that, they want to set up manufacturing facilities here. They want to get these supplies from India."

TMH CEO Kirill Lipa outlined the company's vision during an interaction at its Moscow headquarters. He highlighted India's favorable investment climate, particularly its competitive interest rates, as a significant factor driving the decision.

"We are interested and ready to invest in India," Lipa said. "We aim to develop facilities capable of producing components that can not only serve India but also be exported to the Russian market."

Lipa also emphasised the strong historical ties between Indian and Russian suppliers, suggesting that existing contracts could pave the way for increased exports to Russia.

TMH is already a major player in India's rail sector. Through its subsidiary, Kinet Railway Solutions, the company holds a Rs 55,000 crore contract with Indian Railways for the production and maintenance of 1,920 Vande Bharat sleeper coaches over 35 years. Lipa revealed that TMH is sourcing parts outside Russia for this project, leveraging suppliers from India and other aligned countries.

Despite ongoing international sanctions on Russia, Lipa assured that these restrictions would not affect the project.