Russian capital inflows into Indian equities have witnessed a sharp rise, with inflows from Russia tripling in FY25 to USD 18.45 million from USD 5.16 million in FY24, according to a report by Rubix Data Sciences.
The report noted that Russian FDI equity inflows into India surged more than threefold in FY2025 — the highest level in four years — signalling renewed economic engagement between the two countries. The investment was primarily directed towards trade, maritime cooperation, payment systems, civil aviation and defence.
The study highlighted that total goods traded between India and Russia registered an impressive 70% compound annual growth rate (CAGR) from FY21 to FY25. However, India’s trade deficit widened almost 20 times during the same period.
In FY21, India sourced only 2% of its crude oil imports from Russia. By FY25, the figure increased sharply to 35%, making Russia India’s largest crude oil supplier, with trade value exceeding USD 50 billion.
Crude oil imports from Russia are projected to peak in November this year but may ease from December onwards due to pre-deadline stocking by Indian refiners, discounted pricing and shifting global energy flows, the report said. Market intelligence firm Kpler anticipates that Russian crude flows to India will recover in early 2026, increasingly routed through intermediaries and more complex trade channels.
Russia’s exports are predominantly driven by crude oil, petroleum products and natural gas. The combined share of these three energy commodities in total exports rose to 52% in 2024 from 30% in 2021. Asia now accounts for nearly 95% of Russia’s crude oil exports, with China as the top buyer followed by India.
The report also pointed out that India continues to deepen its defence partnership with Russia despite international pressure. New areas of collaboration include the SU-57E stealth fighter, an advanced variant of the BrahMos missile, and the S-400 air defence missile system.
Russian President Vladimir Putin will pay a state visit to India from December 4-5 at the invitation of Prime Minister Narendra Modi. During the visit, he will attend the 23rd India–Russia Annual Summit and hold bilateral talks with PM Modi.
Ahead of the visit, Russia’s First Deputy Prime Minister and Co-chair of the Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation, Denis Manturov, said that Putin’s visit marks a “return to the tradition of annual high-level summits,” and represents a key step toward deepening the strategic partnership.
“This will be President Putin’s first visit to India in a long period,” Manturov told ANI, adding that both sides have “thoroughly prepared the agenda” to ensure productive meetings on December 4–5. (ANI)