(MENAFN- KNN India) New Delhi, May 21 (KNN) India's trade deficit with Russia has surged to USD 57.18 billion in the fiscal year 2023-2024, marking a 33 per cent annual increase, according to data released by the Ministry of Commerce.
This substantial imbalance is primarily driven by India's heightened imports of discounted Russian crude oil in the wake of Western sanctions imposed on Moscow following the invasion of Ukraine.
The ministry's figures reveal that India's imports from Russia reached USD 61.44 billion in the fiscal year 2023-2024, a 33 per cent year-over-year rise.
In contrast, exports to Russia stood at USD 4.26 billion, reflecting a more modest 35 per cent annual increase. Notably, crude oil imports from Russia climbed to USD 46.49 billion during the same period, surging by nearly 50 per cent compared to the previous fiscal year.
India's trade deficit with Russia has steadily expanded since the fiscal year 2020-2021. However, the past two fiscal years, 2023-2024 and 2022-2023, have witnessed a substantial surge in this imbalance, primarily attributed to India's increasing purchases of discounted Russian crude oil.
Between the fiscal years 2021-2022 and 2023-2024, the trade deficit with Russia has multiplied by over eight times, while exports have risen by approximately 32 per cent during the same period.
In the fiscal year 2021-2022, India's trade deficit with Russia stood at USD 6.62 billion, with exports amounting to USD 3.23 billion and imports totalling USD 9.87 billion.
Notably, India's crude imports from Russia have skyrocketed from USD 2.47 billion in the fiscal year 2021-2022 to USD 46.49 billion in the fiscal year 2023-2024, underscoring the country's reliance on Russian energy supplies.
In addition to crude oil and petroleum products, India's primary imports from Russia include coal, coke, precious and semi-precious stones, fertilisers, vegetable oils, gold, and silver.
Conversely, India's top exports to Russia comprise pharmaceutical products, telecommunications equipment, iron and steel, marine products, and machinery.
With Russia facing widespread Western sanctions following its military campaign in Ukraine, the country has emerged as India's top supplier of crude oil, enabling India to capitalise on substantial discounts and potentially save billions of dollars.
(KNN Bureau)
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