India and Russia are actively pursuing a significant boost in bilateral trade, with a focus on diversifying the basket of goods and services exchanged between the two nations. This initiative comes as Russian President Vladimir Putin arrives in New Delhi for a two-day state visit, marking the 23rd India-Russia annual summit. The leaders of both countries have set an ambitious target of reaching $100 billion in bilateral trade by 2030.
The current trade relationship is heavily skewed towards India's import of Russian energy, particularly crude oil. In fiscal year 2024-25, bilateral trade reached a record $68.7 billion, with India importing nearly $63.8 billion worth of goods from Russia. However, India's exports to Russia remain modest at around $5 billion, comprising pharmaceuticals, tea, engineering goods, marine products, textiles, and organic chemicals. This has resulted in a significant trade deficit for India, reaching approximately $59 billion.
Both governments recognize the need to balance trade flows and are actively seeking ways to increase Indian exports to Russia. Russia's Deputy Kremlin Chief of Staff, Maxim Oreshkin, emphasized Russia's strong interest in purchasing more Indian goods and services, highlighting that India's share in Russian imports currently does not exceed 2%. Oreshkin stated that Russia's desire to increase trade with India is a "strategic choice" and not merely a temporary situation.
India's Commerce and Industry Minister, Piyush Goyal, has also expressed the need for greater diversity in the trade basket, identifying several sectors with high potential for increased exports to Russia. These include automobiles, electronics goods, data processing equipment, heavy machinery, industrial components, textiles, food products, and consumer goods. Goyal has called for the reduction of trade barriers, simplification of customs and regulatory procedures, and alignment of standards and certifications to facilitate increased trade.
To support this diversification effort, a large delegation of Russian businesses is visiting India to explore sourcing opportunities. Russia is reportedly ready to create favorable conditions for Indian products by easing logistics, payment mechanisms, and certification processes. Talks are also underway to certify Indian suppliers of marine products, enabling them to sell their products in Russia.
Beyond merchandise trade, both countries recognize the untapped potential in tourism. With the flying time between major Indian and Russian cities comparable to popular long-haul routes, Russia is becoming an attractive destination for Indian travelers. The implementation of visa-free group travel is expected to further boost tourism between the two countries. In 2024, around 120,000 Indians visited Russia, while 175,000 Russian visitors came to India.
The strengthening of economic ties between India and Russia is viewed as a strategic move for both nations, with India seeking energy security and export markets, while Russia aims to offset losses from Western decoupling. As the summit unfolds, stakeholders from both countries are optimistic about translating rhetoric into reality. Both countries are exploring new avenues of trade, including in sectors such as agriculture, pharmaceuticals, and technology.
