Over the past five years, trade between India and Russia has surged an astonishing 700%, catapulting India into the ranks of Russia’s top three trading partners—an extraordinary leap in their longstanding economic partnership.
From $13 Billion to $68 Billion: A Deepening Economic Bond
According to Russia’s Deputy Prime Minister Denis Manturov, bilateral trade soared from USD 13 billion in 2021 to USD 68 billion in the fiscal year 2024–25The Tribune. This growth underscores a dramatic shift in the economic ties between the two nations.
Energy at the Heart of the Surge
A substantial portion of this surge is driven by India’s importing of Russian hydrocarbons—especially oil and fertilizers—offered at strategic discounts amid global disruptions. Energy imports now dominate the trade mix, while India has simultaneously increased exports in pharmaceuticals, agri-products, and light industrial goods. Commodities like fertilizers, metallurgy, diamonds, and timber have also played a part in diversifying trade from the Russian sideIndian Defence News.
Strategic Corridors and Currency Moves
Boosting connectivity and easing transaction hurdles, both countries are expanding trade corridors like the Chennai–Vladivostok maritime route, the International North–South corridor, and the Northern Sea Route. To reduce reliance on international systems like SWIFT and mitigate currency volatility, they’re encouraging trade in their national currencies—rupee and rouble—through mechanisms like Special Vostro AccountsIndian Defence NewsDelhi Briefing.
Balancing the Trade Ledger
Despite the spectacular increase in trade, External Affairs Minister S. Jaishankar urged action on the growing trade imbalance. India’s trade deficit with Russia ballooned from USD 6.6 billion in 2021 to nearly USD 59 billion in 2024–25The TribuneIndian Defence News. This imbalance, mainly fueled by heavy energy imports, remains a critical issue both nations aim to rectify.
Looking Ahead: Ambitious Targets & Broader Collaboration
Both countries envision reaching a $100 billion trade milestone by 2030, a goal that seems increasingly attainable thanks to the recent momentumThe New Indian ExpressDelhi BriefingHindustan Times. Their agenda extends beyond trade figures to deeper cooperation in advanced sectors like clean energy, nuclear power, pharmaceuticals, high-tech manufacturing, and infrastructure—all aimed to further diversify exchange and fortify resilienceDelhi Briefing.
A New Economic Order Takes Shape
India’s rise to become one of Russia’s principal trading partners marks a shift in regional economic dynamics. Strategic energy deals, new transportation routes, and mutual investments are laying the groundwork for a durable economic partnership. As global trade routes and partnerships evolve, India and Russia are recalibrating to shape a new, multipolar economic order—where strategic autonomy and mutual opportunity take center stage.
