Western Companies Exit Russia, Indian Msmes Eye Huge Opportunities, Says ITE Group CEO

The withdrawal of some Western companies from the Russian market has created significant voids across key sectors, opening up new opportunities for Indian MSMEs and other firms, said Dmitry Zavgorodniy, Chief Executive Officer (CEO) of ITE Group, a Russian company.

Global exhibition leader ITE Group has been organising roadshows for small and mid-sized players in India for the market entry across Russia and the Commonwealth of Independent States (CIS) or Eurasia.

"There are some Western companies who have left, and we know India's economic potential is growing, not every year, every day. So, India becomes more and more competitive, and India wants to diversify its export network. So, the Russian CIS countries are here. There is a clear demand from Russia for Indian products, Indian food, technology, and equipment. Now our task is to explain, to give the businesses a chance to understand each other," ITE Group CEO said.

Communication between Russia and India

Talking about enhanced communication with the companies of the two countries, he said, "We should do much more communication. We explain to Russian and Indian businesses that we should talk more, communicate more, and visit each other more. And we invite Indian businesses to visit our exhibition, where they will find a lot of customers who are looking for new products. They are looking for a new experience. They are looking for a cost-effective, competitive proposal. And being here in India, I understand India can offer very competitive cost and very good and or excellent quality," Zavgorodniy added.

He pointed to a significant trade imbalance, noting that while Russia is exporting more to India, Indian exports remain relatively lower--largely due to limited awareness and communication gaps.

Among the key sectors ripe for Indian participation are food and agriculture, pharmaceuticals, engineering goods, textiles, and industrial machinery. Russian buyers, Zavgorodniy said, are actively looking for cost-effective, high-quality alternatives to products once sourced from Europe and the US.

India-Russia trade grows rapidly, yet untapped potential remains vast

Zavgorodniy noted that while trade between India and Russia is growing, the untapped potential remains significant. In 2021, only around 2,000 Russian companies were engaged in trade with India, but that number has grown to 10,000 by 2025. Looking ahead, he said there is an expectation that up to 30,000 Indian companies could be exporting to the Russian market in the near future.

Zavgorodniy also highlighted the evolving role of BRICS and the shift toward South-South trade, with India playing a pivotal role alongside China, Brazil, and South Africa.

According to the information available on the Indian embassy's website in Moscow, bilateral trade between India and Russia reached a record high of USD 68.7 billion in FY 2024-25, nearly five times higher than the pre-coronavirus pandemic trade of USD 10.1 billion.

It comprises India's exports worth USD 4.88 billion and imports from Russia amounting to USD 63.84 billion.

India-Russia Trade: Exports, Imports, and Future Goals

Key Indian exports include agri-products (fish, shrimp, rice, tobacco, tea, coffee, grapes), chemical products, pharmaceuticals, iron and steel, ceramic products, aeroplane components, machinery, glass and glassware, clothing and knitwear, leather goods, rubber articles, electrical machinery, and surgical tools.

Major imports from Russia are dominated by oil and petroleum products, fertilisers, bituminous substances, mineral fuels, mineral waxes, machinery, equipment, precious metals and stones, wood, pulp and paper products, metals, and vegetable oils. 

According to the information, both sides expect to reach the bilateral trade target of USD 100 billion by 2030. 

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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