The withdrawal of some Western firms from Russia has created new market gaps in key sectors. This provides opportunities for Indian exporters, especially small and medium enterprises (MSMEs), to enhance their presence in the region.
Dmitry Zavgorodniy, Chief Executive Officer of Russian exposition market leader ITE Group, claimed that Indian companies are becoming more competitive and can satisfy Russian demand.ITE Group has been organizing road shows in India to give exposure to Russian and Commonwealth of Independent States (CIS) buyers to local businesses. The exhibitions are showing an increasing demand for Indian foodstuffs, technology, industrial, and consumer goods.
Zavgorodniy identified the importance of better communications between Indian and Russian companies. He observed that Russian customers are aggressively pursuing inexpensive and quality substitutes for European and U.S. products.
Over the last few years, bilateral trade between India and Russia has been high. The Indian embassy in Moscow claimed that the level of trade grew to $68.7 billion in FY 2024-25, which is three to four times higher than the pre-pandemic level of $10.1 billion. India's exports were $4.88 billion, whereas Russia's imports were worth $63.84 billion.
India is a great exporter of seafood, rice, tea, coffee, grapes, and pharmaceuticals. Other major exports are textiles, ceramics, machinery, leather goods, glassware, and surgical instruments. Energy has been the major import item as Russia remains a supplier of crude oil, fertilizers, metals, machinery, and paper products to India.
Although this has grown, trade has been biased, with Russia exporting much more to India. To narrow this gap, officials in the two countries promote increased Indian involvement in other fields like food processing, engineering, and industrial machinery.
Bilateral business between the two countries is on the increase. Approximately 2,000 Russian companies collaborated with Indian partners in 2021, and the figure will grow to 10,000 by 2025. It is estimated that in the next few years, up to 30,000 Indian companies might begin to export to Russia.
The two governments are committed to achieving bilateral trade of $100 billion by 2030. The industry leaders feel this goal can be achieved by enhancing awareness, improving communication, and diversifying product offerings. Russia also has an upper hand in India as an economic partner, as the country is increasingly playing a role in the BRICS and South-South trade.