India–Russia Trade | New Momentum for India–Russia Trade; Opportunities for Over 300 Indian Products

New Delhi (PTI):
More than 300 Indian products, ranging from agricultural goods, pharmaceuticals, machinery, chemicals to engineering products, have significant growth potential in the Russian market. Central government officials informed the media that since these products are well-manufactured in India, there is strong scope for India to expand its presence in Russia. Recently, both countries have set a target to increase bilateral trade to USD 100 billion by 2030.

India currently faces a trade deficit of USD 59 billion with Russia. To reduce this gap, the Ministry of Commerce has prepared a roadmap identifying products with export potential. At present, Indian products account for only 2.3% of Russia’s total imports. In 2020, India imported goods worth USD 5.94 billion from Russia, which increased sharply to USD 64.24 billion in 2024.

India’s imports of Russian crude oil stood at just USD 2 billion in 2020, which surged to USD 57 billion by 2024. Russian oil now accounts for 21% of India’s total oil imports, and over the past year this share has risen to 35–38%. Besides crude oil, India also imports fertilizers and edible oils from Russia.

Labour-intensive sectors such as garments, textiles, leather goods, handloom products, and processed food industries also offer growth opportunities for India. India’s share in Russia’s electronics and textile markets is less than 1%. Russia imports agricultural products worth USD 3.9 billion, while India’s share is only USD 452 million, indicating substantial untapped potential.

Russia’s imports of engineering goods such as machinery, generators, transformers, cables, engines, chassis, and steel products amount to USD 2.7 billion, whereas India’s exports in this segment are only USD 90 million. As Russia seeks to reduce its dependence on China by diversifying its sourcing of engineering goods, India has a strong opportunity to boost exports.

In the chemicals and plastics sector, Russia’s imports stand at USD 2.06 billion, while India’s share is just USD 135 million.

Strong Scope in Pharmaceuticals

India is a global leader in pharmaceutical exports. Russia imports medicines worth USD 9.7 billion annually, but India’s share is only USD 546 million. Given India’s strong position in generic medicines, there is enormous scope to significantly increase pharmaceutical exports to Russia.