In the wake of President Vladimir Putin's recent visit to New Delhi, Russia's largest bank, Sberbank, is actively pursuing initiatives to increase both industrial imports and labor migration from India. This move is designed to address Russia's growing labor shortages and strengthen economic ties between the two nations.
Sberbank's First Deputy CEO, Alexander Vedyakhin, told Reuters that the bank is working to facilitate deals with over 6,000 Indian firms that are new to Russian trade. The focus is not only on boosting exports to India but also on increasing imports, particularly in sectors like IT, pharmaceuticals, and machine-building. Payments for these transactions are being conducted in national currencies, namely rubles and rupees, to bypass the impact of international sanctions. Russia aims to increase bilateral trade with India to $100 billion.
Vedyakhin also emphasized the demand for skilled workers in Russia, which faces record-low unemployment and a projected shortage of 3 million workers by 2030. Sberbank is assisting Russian companies in recruiting labor from India to fill these gaps. This initiative aligns with a broader effort to deepen cooperation between the two countries.
This development follows reports that India and Russia are expected to sign a bilateral labor mobility agreement aimed at establishing a framework for legal migration and protecting the rights of Indian workers in Russia. The agreement seeks to expand opportunities for skilled Indian professionals in sectors such as construction, textiles, engineering, and electronics. It is estimated that over 70,000 Indian nationals will be officially employed across Russia by the end of the year, operating under quotas managed by the Russian Ministry of Labour.
The Moscow-based Indian Business Alliance (IBA) has lauded the forthcoming India-Russia Mobility Agreement, viewing it as a "strategic milestone" in expanding relations between the two countries. IBA President Sammy Manoj Kotwani stated that the agreement presents a "win-win opportunity," providing skilled manpower for Russia's economy while ensuring secure and dignified employment for Indian professionals. The IBA has also expressed its commitment to collaborating with both governments and business partners to organize orientation and language programs for incoming Indian workers, promoting fair recruitment channels and ethical employment standards.
However, it is important to note that earlier reports of potentially one million Indian workers migrating to Russia by the end of 2025 were officially denied by the Russian Ministry of Labor. The ministry clarified that the quota for Indian workers in 2025 is approximately 71,800.
Despite the opportunities, Indian workers in Russia may face challenges, including language and cultural barriers, potential discrimination, and social isolation. Successfully integrating into Russian communities requires supportive social policies, community engagement, and efforts to reduce prejudice and bureaucratic obstacles. Some Indian workers have also been lured by fraudulent job offers and coerced into joining the Russian military. The Ministry of External Affairs in New Delhi has confirmed such cases and is seeking their early discharge.
Despite these challenges, the increasing presence of Indian workers in Russia reflects a growing trend in India-Russia relations, driven by Russia's labor shortages and India's dynamic workforce. This collaboration has the potential to strengthen economic ties and foster goodwill between the two nations.
