Putin's Visit & Indiarussia Business Forum To Reinvigorate Trade Ties: FIEO

(MENAFN- KNN India) New Delhi, Nov 29 (KNN) The Federation of Indian Export Organisations (FIEO) believes that the upcoming state visit of Russian President Vladimir Putin to India on 4–5 December, coinciding with the India–Russia Business Forum, is expected to provide a strategic platform to deepen trade and investment ties between the two nations.

Recent trade data shows that India's exports to Russia reached USD 1.84 billion, while imports stood at USD 26.45 billion during April–August 2025–26.

Bilateral merchandise trade hit a record USD 68.7 billion in FY 2024–25, with exports at USD 4.88 billion and imports, largely comprising crude oil, petroleum products, fertilisers, and other raw materials, at USD 63.84 billion.

Trade between India and Russia has expanded more than five-fold since 2021, up from around USD 13 billion to USD 68 billion in 2024–25.

FIEO President S C Ralhan noted that while the trade imbalance remains significant in Russia's favour, there is substantial potential for Indian exports in pharmaceuticals, engineering goods, electronics, agro-products, auto & auto-components, and IT services, driven by shifting market dynamics.

The exit of many Western companies from Russia has created opportunities for Indian exporters to fill gaps across multiple sectors. Both nations have set an ambitious long-term goal of raising bilateral trade to USD 100 billion by 2030.

Ralhan also highlighted that bilateral investments have grown steadily, with a target of USD 50 billion by 2025.

Russian investments in India cover sectors such as oil & gas, petrochemicals, banking, railways, and steel, while Indian investments in Russia focus on oil & gas and pharmaceuticals.

The revival and expansion of logistics corridors, including the International North-South Transport Corridor (INSTC), has also made trade more cost-effective.

“The Business Forum comes at a pivotal moment for India-Russia trade,” Ralhan said.“While the surge in trade volumes shows strong economic ties, it is now critical to diversify into non-oil sectors such as engineering goods, chemicals, pharmaceuticals, agriculture, textiles, leather, gems & jewellery, and value-added manufactured products. The Forum should pave the way for balanced, long-term trade and mutual investments.”

FIEO sees strong potential for expanding Indian exports of high-value goods and services, including IT/ITES, education, and healthcare, while attracting Russian investments in India's infrastructure, manufacturing, green energy, railways, mining, and technology sectors.

The Federation also underscored the need to address market access challenges in sectors like marine products, dairy, and pharmaceuticals, which continue to see robust demand in Russia.

(KNN Bureau)

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