India and Russia are strengthening their economic partnership, with bilateral trade and investment reaching historic highs and both governments pushing to expand cooperation across energy, manufacturing, connectivity and technology.
According to the Ministry of External Affairs (MEA), India-Russia bilateral trade touched USD 68.7 billion in FY 2024-25, a nearly sixfold increase from pre-pandemic levels. India’s exports stood at USD 4.88 billion, while imports – dominated by crude oil, petroleum products, fertilizers and minerals – totaled USD 63.84 billion. Indian exports mainly included agricultural products, pharmaceuticals, chemicals, textiles, machinery and engineering goods. Both countries aim to raise bilateral trade to USD 100 billion by 2030.
Services trade has remained steady, with a USD 1.021 billion turnover in 2021. The trade balance continues to favour Russia.
Investment Growth on Both Sides
India’s investments in Russia are estimated at USD 16 billion, mainly in oil and gas and pharmaceuticals. Russian investments in India amount to around USD 20 billion, covering sectors such as petrochemicals, steel, railways, banking and energy. Both sides earlier set a target of USD 50 billion in investments by 2025.
Institutional Mechanisms Driving Engagement
The India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) remains the primary forum for managing bilateral economic cooperation. It is co-chaired by India’s External Affairs Minister S. Jaishankar and Russia’s First Deputy Prime Minister Denis Manturov. The 25th session was held in New Delhi in November 2024.
Seventeen working groups and six sub-groups under the IRIGC cover areas including trade, energy, investment, agriculture, industry, technology, banking, climate, manpower, railways, fertilizers and aviation. Another mechanism, the India-Russia Strategic Economic Dialogue, oversees cooperation in transport, agriculture, SMEs, digital transformation, banking and tourism.
Top-Level Visits Strengthen Ties
Prime Minister Narendra Modi has visited Russia in 2015, 2016, 2017, and 2019, with each visit contributing to new trade, investment and energy agreements. His July 2024 visit set a fresh trade target of USD 100 billion by 2030, expanded energy cooperation and pushed for progress on the India -Eurasian Economic Union Free Trade Agreement.
During President Vladimir Putin’s 2018 visit to India for the Annual Summit with Prime Minister Narendra Modi, the two sides signed a USD 5 billion agreement for the supply of S-400 surface-to-air missile systems to India. His subsequent visit to New Delhi in December 2021 saw the two countries reinforce their partnership with a military and technical cooperation pact valid until 2031 and a pledge to raise annual trade to USD 30 billion by 2025 along with 28 investment pacts, including deals on steel, shipbuilding, coal and energy.
Ministerial Engagements Expand Cooperation
Several Indian ministers have travelled to Russia in recent years to deepen partnerships in energy, trade, mining, connectivity, culture, and technology. Russian delegations have also visited India for forums and sector-specific meetings. These engagements have helped advance cooperation in oil and gas, nuclear energy, pharmaceuticals, film, digital technologies, railways and skilled manpower.
Focus Areas for the Coming Years
According to the MEA, during recent discussions, both sides emphasized on removing tariff and non-tariff barriers; improving logistics and payment systems; expanding energy trade and joint investments; increasing Indian exports to reduce the trade gap; advancing negotiations on the India-EAEU Free Trade Agreement; promoting mobility of skilled Indian workers; and boosting industrial collaboration.
A growing number of business delegations and sector-specific meetings indicate that both countries are preparing for deeper long-term engagement.
With bilateral trade at an all-time high and cooperation expanding across strategic sectors, India and Russia are moving toward a more broad-based economic partnership aimed at meeting the USD 100 billion trade goal by 2030.
