India is strategically positioning itself to increase its share of trade with Russia, with a focus on diversifying exports beyond the traditional reliance on energy. This comes as bilateral trade between the two nations has already seen substantial growth in recent years.
Expanding Trade Relations
India is actively pursuing a trade deal with the Eurasian Economic Union, a move designed to significantly boost its exports to Russia. The withdrawal of several Western companies from the Russian market has created gaps across critical sectors, paving the way for Indian businesses to expand their footprint. Indian businesses are becoming increasingly competitive and are well-positioned to fill the demand for various goods and services in Russia.
Diversification of Exports
While energy resources continue to be a major part of Russian exports to India, the range of goods traded between the two countries is expanding. India's shipments are diversifying beyond traditional sectors such as machinery and pharmaceuticals to include products like aluminum and apparel. The nation is also exploring opportunities to export marine and farm goods. Key Indian exports include agri-products (fish, shrimp, rice, tobacco, tea, coffee, grapes), chemical products, pharmaceuticals, iron and steel, ceramic products, aeroplane components, machinery, glass and glassware, clothing and knitwear, leather goods, rubber articles, electrical machinery, and surgical tools.
Bilateral Trade Figures
The bilateral trade between India and Russia during FY25 amounted to US$ 68.72 billion. Indian exports amounted to US$ 4.88 billion, while imports from Russia amounted to US$ 63.84 billion. Both governments have set a bilateral trade target of $100 billion by 2030, a goal industry leaders and officials say is achievable with greater awareness, better communication, and wider participation of Indian companies across sectors.
Investments
At the summit in New Delhi in December 2021, the leaders of the two countries confirmed the goal of increasing the bilateral investment volume to USD 50 billion by 2025. As of October 2023, India's investments in Russia were estimated to be USD 16 billion, up from USD 6.5 billion in 2011. Russian Investments in India total around USD 20 billion as per the remarks made by President Putin in December 2024.
India's Stance on Russian Oil
India has become one of the largest buyers of discounted Russian oil since Western countries imposed sanctions on Moscow following its invasion of Ukraine in February 2022. Despite objections from the U.S., India maintains that its oil imports are vital for sustaining its large and growing economy, prioritizing energy security. India's Ministry of External Affairs has stated that Delhi is “broad-basing and diversifying” its energy sources, reflecting pragmatism amid global market changes. India imports about a third of its oil from Russia, and New Delhi has argued that a complete halt in purchases without access to other cheap sources would be unfeasible.
Geopolitical Factors
India is trying to find a way to maintain ties with both the US and Russia as it seeks to clinch a trade deal with President Donald Trump and bring down tariff rates. The US has imposed tariffs of up to 50% on certain Indian goods since August 2025, tied to India's energy trade with Russia. Despite these challenges, discussions between India and the US are moving towards a potential agreement, with both sides reporting "positive" developments.
India's Long-Term Strategy
In the long term, India may also seek to diversify energy imports beyond Russia to reduce future sanctions risks. Strengthening domestic renewable energy and establishing an alternative supply chain would ensure long-term resilience and sustainability.
