India-Russia trade soars to record $68.7B as West exits. India–Russia bilateral trade has surged 5x, from USD 13 bn in 2021 to USD 68 bn in 2024-25, and it continues to grow - EAM S Jaishankar.
Western firms exiting Russia are opening space for Indian exporters — SMEs in India target $100B trade with #Russia as gaps in supply emerge.
India-Russia trade soars to record $68.7B as West exits
India’s trade relationship with Russia has changed dramatically over the past few years. What used to be a relatively modest exchange has now surged to a record $68.7 billion in the last financial year. That’s nearly six times what it was before the pandemic.
Trade Surge Driven by Russian Oil Imports
A big part of this jump comes from India buying more Russian oil. Since the war in Ukraine began, India has been purchasing Russian crude at a discount.
In fact, Russia now supplies around 40% of India’s oil imports—up from less than 1% before the conflict.
But this has also created a major trade imbalance: India’s imports from Russia reached almost $64 billion, while its exports were just under $5 billion.
External Affairs Minister S. Jaishankar recently pointed out that this gap has widened significantly, and both countries are now working to balance things out. They’ve even set a new target of reaching $100 billion in bilateral trade by 2030.
What’s especially interesting is how Western companies leaving Russia has opened doors for Indian businesses. With many European and American brands pulling out, Russian buyers are actively looking for new suppliers—and Indian companies are stepping in.
Everything from pharmaceuticals and engineering goods to textiles and food products is in demand.
Western Exit Creates Business Vacuum
Dmitry Zavgorodniy, who leads a major Russian exhibition group, mentioned that the number of Russian companies trading with India has grown from 2,000 in 2021 to around 10,000 today.
He believes up to 30,000 Indian firms could be exporting to Russia in the near future.
MSMEs Eye Diversification Beyond Oil
Small and medium-sized Indian businesses, in particular, are seeing new opportunities in sectors like agriculture, machinery, and chemicals. But there’s still a long way to go—right now, Indian exports make up only about 7% of the total trade between the two countries.
Both governments are now focusing on easing trade barriers and improving logistics to help businesses connect more smoothly. It’s a significant shift, and one that could reshape trade dynamics well beyond just these two countries.
