Ulyanovsk region invites Indian firm to benefit from 2% corporate tax
“The Ulyanovsk region, one of the most prominent industrial hubs in Russia, hosts companies from around the world, including the USA, Japan, and Germany. However, only one Indian company is present there—a missed opportunity for both India and Russia, given their deep economic and trade relations,” said Ms. Alina Abitova, General Director of the Ulyanovsk Region Development Corporation, during a high-level business exchange and interactive session organized by All India Association of Industries (AIAI) and MVIRDC WTC Mumbai with the Government of the Ulyanovsk region. The session concluded with the signing of a Memorandum of Understanding (MoU) between WTC Mumbai and the Ulyanovsk Region Development Corporation to promote bilateral trade and investment.
Inviting Indian companies to invest in the region, Ms. Abitova added, “The Ulyanovsk region offers one of the most advanced industrial and business ecosystems in Russia, supported by investment-friendly taxation and business regulations. Strategically located in a major economic corridor, the region boasts a robust multi-modal logistics system connecting it with key cities in Russia, as well as with China and India, providing the fastest and most cost-effective route for trade. Additionally, the region offers various attractive incentives for businesses, including a Special Economic Zone near the international airport that provides customs duty exemptions and tax benefits. These include a reduced corporate tax rate of 2% for 10 years, against a general tax rate of 25%, as well as exemptions from property tax, land tax, and transport tax. Furthermore, the government offers extensive support for investment projects in the region. Ulyanovsk is also rich in essential minerals such as quartz, sand deposits, diatomite, and cement raw materials.”
She further stated, “Key sectors with significant potential for Indian companies include automotive & components, aviation, construction, composite manufacturing, pharmaceuticals, consumer goods, and tourism. Indian businesses with no presence in the region should initially establish themselves as trading partners and later explore opportunities to set up their own manufacturing units. There is also a strong demand for resins in the Ulyanovsk region, presenting a valuable export opportunity for Indian enterprises.”
Earlier, in his welcome address, Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman of MVIRDC WTC Mumbai expressed optimism about India-Russia business relations amidst the nearing resolution of the conflict in Europe. He emphasized the need for a more focused approach to enhancing bilateral business cooperation. He remarked, “Russia has been India’s long-standing and trusted trade and business partner. Trade between the two nations has witnessed exponential growth in recent years, reaching an all-time high of USD 65.4 billion in FY 2023-24. However, there remains significant potential to expand bilateral trade beyond USD 100 billion. Achieving this will require focusing on select sectors and identifying suitable business partners to transform interactive sessions like this into meaningful business collaborations.”
Commenting on the MoU, Dr. Kalantri underscored the importance of establishing a robust communication channel between businesses in both countries. He added, “Investment must be another key area of focus in the bilateral relationship. Currently, bilateral investment stands at approximately USD 36 billion, with a target of USD 50 billion by 2025. More frequent interactions and discussions are necessary to achieve this target and foster deeper connections between businesses, facilitating partnerships and joint ventures. All India Association of Industries (AIAI) and WTC Mumbai is committed to providing all necessary support to promote bilateral trade and investment relations.”
Speaking on the business potential for India in the Ulyanovsk region, he further noted, “The region has recently demonstrated immense potential for trade and investment by Indian companies. India’s exports to the region have grown by 400%, while imports have increased by 200% in the past year, highlighting untapped opportunities. The region has also granted residency to 400 Indians, showcasing its commitment to fostering deeper collaboration. India can explore diversifying its import sources for various agricultural commodities such as edible oil, grains, and fertilizers from this region while also identifying export opportunities for pharmaceuticals, aviation, machinery, and more.”
Speaking on the occasion, Mr. Mamed Akhmedov, Head of the Branch of the Trade Mission of the Russian Federation in Mumbai, highlighted the growing interest of Indian companies in doing business with Russia. He said, “Russia and India share one of the most important bilateral relationships, and its significance is growing by the day. Annually, our office receives more than 2,000 emails from Indian businesses inquiring about opportunities in Russia. So far, we have facilitated bilateral investments worth over USD 7 billion across sectors such as railways, agriculture and food processing, machinery, and equipment. Given the rising global uncertainties in trade, this is the ideal time for India and Russia to strengthen their trade and investment partnership. Our office is fully prepared to provide comprehensive support to any Indian business seeking Russian partners.”
Ms. Rupa Naik, Executive Director of MVIRDC WTC Mumbai, while proposing the vote of thanks, emphasized the important role the MoU can play in facilitating trade and investment between the two countries. She said, “The exchange of trade and business delegations is crucial for fostering a thriving ecosystem for commerce. With the global network of WTCs and Russia hosting some of the most active WTCs, this MoU has the potential to unlock new trade opportunities for both nations through enhanced trade and communication exchanges.”
Caption: Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, WTC Mumbai (3rd from left) with Ms. Alina Abitova, General Director, Ulyanovsk Region Development Corporation (2nd from left). Also seen in the picture (from left to right): Mr. Mamed AKHMEDOV, Head of the Branch of the Trade Mission of the Russian Federation in Mumbai, Ms. Rupa Naik, Executive Director, WTC Mumbai and Ms. Aakruti Bagwe, Director-Operations, WTC Mumbai.