India-Russia Economic Relations Reach New Heights: Bilateral Trade Hits Record $68.7 Billion

By NewsSetu Bureau

New Delhi, November 2025:
India and Russia, two strategic partners with a legacy of cooperation rooted in the Soviet era, continue to demonstrate remarkable progress in their economic engagement. Over the decades, the relationship has evolved from traditional defense and energy cooperation to an expansive partnership spanning trade, technology, investment, and cultural exchange.

Bilateral Trade at Record High

The bilateral trade between India and Russia reached a historic peak of USD 68.7 billion in FY 2024–25, marking a nearly sixfold increase from pre-pandemic levels of USD 10.1 billion.

India’s exports to Russia stood at USD 4.88 billion, while imports amounted to USD 63.84 billion, largely dominated by oil and petroleum products. Other major imports from Russia include fertilizers, bituminous substances, mineral fuels, machinery, metals, precious stones, pulp and paper products, and vegetable oils.

India’s exports to Russia remain diverse, comprising agricultural products such as fish, shrimp, rice, tea, coffee, and tobacco, along with pharmaceuticals, chemicals, machinery, glassware, textiles, leather goods, and electrical machinery.

Services trade between the two countries has remained steady, totaling USD 1.021 billion in 2021, with a trade balance favoring Russia. Both nations are now focused on addressing the existing trade imbalance and expanding Indian exports through targeted initiatives.

Investment Cooperation Strengthens

Investment ties have grown significantly, supported by frequent high-level engagements and institutional mechanisms. During the India–Russia Summit in December 2021, both leaders set a goal to enhance bilateral investment volumes to USD 50 billion by 2025.

As of October 2023, India’s investments in Russia reached USD 16 billion, up from USD 6.5 billion in 2011, primarily in the oil and gas, pharmaceuticals, and IT sectors. Meanwhile, Russian investments in India stand at approximately USD 20 billion, concentrated in energy, petrochemicals, railways, banking, and steel.

Institutional Mechanisms Driving Cooperation

At the core of bilateral economic engagement is the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) — the apex platform for G2G coordination. Co-chaired by India’s External Affairs Minister Dr. S. Jaishankar and Russia’s First Deputy Prime Minister Mr. Denis Manturov, the IRIGC-TEC oversees 17 Working Groups and 6 Sub-Groups covering diverse sectors, from energy and ICT to higher education, transport, and agriculture.

The 25th session of the IRIGC-TEC, held in New Delhi on 12 November 2024, reviewed progress on priority investment projects, trade barriers, climate issues, and manpower cooperation. The 26th session, co-chaired in August 2025, reaffirmed the commitment to achieve the USD 100 billion trade target by 2030, focusing on tariff reduction, logistics improvement, smoother payment mechanisms, and early conclusion of the India–Eurasian Economic Union (EAEU) Free Trade Agreement.

The India-Russia Strategic Economic Dialogue (IRSED) serves as another key forum, focusing on cooperation in transport, agriculture, digital transformation, SMEs, trade, banking, and tourism.

High-Level Visits Boost Economic Momentum

Prime Minister Narendra Modi’s Visits

Prime Minister Narendra Modi has been instrumental in elevating India–Russia economic relations to new heights through multiple high-level visits.

His inaugural visit in 2014 laid the groundwork for deeper cooperation in defense and nuclear energy, setting a bilateral trade target of USD 20 billion. Subsequent visits in 2015 and 2016 focused on joint investments, diamond trade, and industrial partnerships.

The 2017 summit saw landmark agreements on six new nuclear reactors, followed by enhanced energy and defense collaboration during the 2019 visit, which raised the trade target to USD 50 billion by 2025.

During the 2024 visit to Russia, both nations took a major leap forward by setting a new USD 100 billion trade target by 2030, signing long-term energy contracts, and promoting industrial cooperation in transport engineering and metallurgy. The visit also emphasized increasing Indian exports and expanding joint manufacturing in India for Russian-origin defense equipment and spare parts.

President Vladimir Putin’s Engagements

Russian President Vladimir Putin has played an equally pivotal role in consolidating the post-Soviet partnership.

In December 2021, President Putin’s visit to New Delhi reinforced defense and energy cooperation with a military and technical pact valid until 2031. The summit yielded 28 investment pacts in sectors such as steel, shipbuilding, and coal, reaffirming Russia’s long-term commitment to India’s development.

Earlier, during his 2018 visit, the two sides signed a USD 5 billion deal for S-400 surface-to-air missile systems, further strengthening strategic ties.

Ministerial-Level Engagements

Ministerial visits between 2019 and 2025 have served as vital catalysts for trade and investment cooperation.

In August 2019, Commerce and Industry Minister Shri Piyush Goyal led a high-powered delegation of Chief Ministers and over 140 Indian companies to Vladivostok, engaging with 200 Russian enterprises across priority sectors such as energy, healthcare, forestry, and infrastructure.

Energy collaboration remained a cornerstone of the partnership. During the 6th Eastern Economic Forum (2021), Petroleum Minister Shri Hardeep Singh Puri met top Russian energy executives, including Rosneft and Gazpromneft, to review joint projects and future investments.

In December 2023, External Affairs Minister Dr. S. Jaishankar held extensive talks with Russian leadership, including President Putin, and signed MoUs on pharmaceuticals and nuclear energy.

The 25th IRIGC-TEC session (November 2024), co-chaired by DPM Denis Manturov, paved the way for the Programme of Economic Cooperation 2030, outlining new trade and investment priorities.

In February 2025, Russia’s Energy Minister Sergei Tsivilev and his deputy Pavel Sorokin visited New Delhi to expand energy cooperation, participating in the India Energy Week 2025 alongside leading Russian firms like Novatek, Gazprom Neft, and Sberbank.

Cultural diplomacy was also highlighted through the visit of Russia’s Minister of Culture Ms. Olga Lyubimova in May 2025, who participated in the World Audio Visual & Entertainment Summit (WAVES 2025) in Mumbai, promoting film and media cooperation and establishing the Eurasian Academy of Cinematographic Arts.

The engagement continued at the St. Petersburg International Economic Forum (SPIEF 2025), where India’s Minister Shri Ashwini Vaishnaw met Russian ministers and business leaders to discuss cooperation in AI, railways, cybersecurity, and information technology.

Expanding People-to-People and Manpower Cooperation

Beyond trade and investment, India and Russia are also exploring new avenues for manpower collaboration. In June 2025, a delegation of 35 Indian recruiting agencies visited Moscow and St. Petersburg to identify employment opportunities for Indian skilled workers, signaling a new chapter in labor mobility and people-to-people exchange.

Looking Ahead: Towards a USD 100 Billion Partnership

With both nations targeting USD 100 billion in trade by 2030 and USD 50 billion in investments, the trajectory of India–Russia economic relations remains upward and ambitious. The collaboration now extends well beyond traditional sectors, embracing new frontiers in digital economy, renewable energy, space technology, and cultural industries.

The sustained momentum of high-level visits, institutional cooperation, and strong political will on both sides positions the India–Russia partnership as one of the most enduring and dynamic in global diplomacy today.

As India continues its journey towards becoming a global economic powerhouse, and Russia diversifies its trade partnerships in the East, their shared vision of mutual growth and strategic collaboration continues to stand as a pillar of stability in an evolving world order.