India is actively seeking Russia's approval to expedite the registration and clearance processes for Indian marine and pharmaceutical products, aiming to significantly boost bilateral trade between the two nations. This initiative was a key focus during Commerce Secretary Rajesh Agrawal's recent visit to Moscow for the 26th Meeting of the India-Russia Working Group on Trade and Economic Cooperation.
The push for smoother market access is part of a broader strategy to achieve a bilateral trade target of $100 billion by 2030. Currently, the trade volume stands at $25 billion, leaving considerable room for expansion. India has requested Russia to facilitate the expedited listing of domestic establishments alongside the registration of marine and pharma products.
India's interest in increasing exports to Russia aligns with its strategy to diversify its export markets. While the United States remains a significant destination for Indian pharmaceuticals, accounting for over a third of exports, India is exploring opportunities in Russia, Brazil, and the Netherlands amid concerns about potential US tariffs. In fiscal year 2025, pharmaceutical exports to Russia totaled $577 million. Industry sources suggest that given the existing manufacturing capacity, India could potentially increase exports to these newer markets by 20%.
Russia has signaled its readiness to welcome Indian medical and other exports, particularly if the US imposes trade restrictions or higher tariffs on Indian goods. This commitment reinforces the economic ties between the two countries and provides Indian exporters with alternative opportunities in the Russian market.
Beyond marine and pharmaceutical products, the India-Russia Working Group has identified several other sectors with strong potential for trade expansion. These include engineering goods, chemicals and plastics, electronics, agriculture, leather, and textiles. India is also highlighting its strengths in smartphones, motor vehicles, gems and jewellery, organic chemicals and textiles.
In the services sector, India is encouraging greater participation of Russian entities in IT-BPM, healthcare, education, and creative industries, while seeking smoother mobility for Indian professionals to meet Russia's labor market needs. India has also showcased its Global Capability Centre (GCC) ecosystem, which comprises over 1,700 centers employing around 1.9 million professionals, as a platform for Russian firms to enhance business continuity, cybersecurity, design and analytics, and shared services.
Both sides have acknowledged the importance of addressing payment solutions to support businesses, especially medium, small, and micro enterprises. They have also agreed to explore a bilateral investment treaty.
Bilateral trade between India and Russia reached a record high of USD 68.7 billion in FY 2024-25, nearly 5.8 times higher than the pre-pandemic trade of USD 10.1 billion. At a summit in New Delhi in December 2021, the leaders of the two countries confirmed their goal of increasing the bilateral investment volume to USD 50 billion by 2025. As of October 2023, India's investments in Russia were estimated at USD 16 billion, while Russian investments in India totaled around USD 20 billion.
