Processing industry should account for 17% of Russia’s 2035 GDP

MOSCOW, Apr 9 (PRIME) -- The share of the processing industry in Russia’s gross domestic product should rise to 17% in 2035 from 14%, but it is possible only if industrial output grows by 3–4.5% per year, Industry and Trade Minister Denis Manturov said at a government meeting on Thursday.

“At the moment, the processing companies account for about 14% of annual added value and provide jobs to more than 10 million people…Attainment of the key factor of the strategy means an increase of the processing share in GDP to 17% in the next 15 years. Annual dynamics of industrial output growth should stand at no less than 4.5% until 2024 and more than 3% after that,” he said while presenting a consolidated strategy of the processing industry until 2024 and 2035.

Several tasks should be fulfilled in order to reach the goal, including an increase in the number of companies that use and develop technical innovations to 50% and to 60% in 2035. The ministry will continue focusing on stimulation of investment in fixed assets upgrade, reduction of investor regulatory and credit burden through tax exemptions and exemptions on long-term contracts and instruments of financing, he said.

Under the strategy, the government will support development of digital platforms, lean production, preferences in transfers of technologies, and attraction of venture capital to investment niches. The measures should ensure an increase of the fixed capital investment share to 25% in 2024 from 19% in 2020, Manturov said.

The major impact of the strategy is expansion of the share of Russian products used in infrastructure projects to 70% and their share in the total consumption to 75% in 2035, he said.

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