Exports to Russia to Double in Two Years

Chennai: The Russian delegation visiting India is keen on increasing shipments from India to ease the trade deficit with India. Indian exporters expect shipments from India to Russia to double in two years.

“The Russian delegation is primarily here to buy more from India. They are keen on increasing imports. This will help the trade become more balanced and diversified. Pharma, machinery, electrical and electronics, steel, chemicals, plastics, automobiles and auto components, marine products, steel and apparels are some of the categories being pushed for exports,” said Ajay Sahai, director general FIEO.

India’s merchandise trade with Russia remains sharply imbalanced. Exports rose from $4.3 billion in FY24 to $4.9 billion in FY25, with shipments of $2.25 billion in April–September 2025. On the other hand, India’s Russian imports stood at $63.2 billion in FY24 and inched up to $63.8 billion in FY25, with a high share of crude oil.

“We expect the exports to Russia to almost double to $8 billion in two years,” he said.

In the export basket, machinery accounts for $367.8 million, pharmaceuticals $246 million and organic chemicals ($165.8 million) together account for most of the value in the first half of FY26, as per the data of GTRI. Further, smartphones made up for $75.9 million, vannamei shrimp $75.7 million, meat $63 million and garments were just $20.94 million.

“Though imports are rising, our share in Russia’s total imports is less than 5 per cent in several categories. In pharmaceuticals, our share is less than 3 per cent, for electricals and electronics is 5 per cent, in Russia’s $30 billion imports of automobiles and auto components, India’s share is insignificant and in apparels it is 1.5 per cent,” said Sahai.

“The delegation also will address other trade-related issues. The Special Rupee Vostro Accounts (SRVAs) have helped with payment-related issues. However, the fluctuating ruble makes payments in local currency difficult,” he said.

The SRVAs allow payments for oil shipments from Indian importers to be made in rupee, bypassing dollar-based trade settlements. RBI has allowed Russian entities to invest surplus rupee balances from SRVAs in Indian G-Secs, bonds, equity, and infrastructure projects.

“After Russia was partially removed from SWIFT, payments have shifted to a multi-currency system. Dirhams account for 60–65 per cent, rupee 25–30 per cent, and yuan 5–10 per cent. Rupees parked in special Indian accounts—estimated at Rs 60,000 crore—are largely unusable. Russia now prefers settlement via the UAE dirham, which it can spend or convert freely,” said Ajay Srivastava, founder, GTRI.

Further, logistics between the countries have improved to the extent that goods reach India in 30 days. However, lower volumes increase freight charges.