Indo-Russian Relations
Daily coverage of what makes ties between Delhi & Moscow ever-lasting — even in times of western sanctions.

India's Engineering Exports to Russia Hit Record High

© AP Photo / Saurabh DasIndian Prime Minister Narendra Modi, right, and Russian President Vladimir Putin share a laugh as they attend a session of the World Diamond Conference in New Delhi, India, Thursday, Dec. 11, 2014.
Indian Prime Minister Narendra Modi, right, and Russian President Vladimir Putin share a laugh as they attend a session of the World Diamond Conference in New Delhi, India, Thursday, Dec. 11, 2014. - Sputnik India, 1920, 28.05.2024
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Russia has emerged as India's fourth-largest commercial partner, with a staggering total trade turnover of $65.7 billion. This thriving partnership is predominantly fueled by significant oil imports to India, which, in turn, has exported machinery and engineering goods.
India has witnessed a significant surge in the export of engineering goods, machinery, machine parts, and aircraft spares to Russia, while pharmaceuticals, tea, coffee, and tobacco exports have decreased, a report by the Times of India said.
The report highlights that India's export trends have been reshaped over the past financial year, specifically in the engineering and machinery sectors, largely due to the geopolitical setting amid Western sanctions on Russia due to the ongoing conflict with Ukraine.

Meanwhile, according to the official data from the Commerce and Industry Ministry, India's total trade to Russia in 2023 exceeded 35% of all its exports ($4.3 billion) and was largely driven by engineering goods. Of the $1.2 billion increase in exports to Russia, nearly half was attributed to machines and machine parts, including electronics.

While this has led to an increase in opportunities for India in the Russian market, the government has implemented several measures to address banks' hesitancy in processing transactions and help exporters navigate the complexities of the sanctions.
Equally, due to the rise in de-dollarisation, Russian exporters are now permitted to invest more easily using rupee payments facilitated by the Reserve Bank of India.
Industry experts have also pointed to the rerouting of some goods destined for Russia through the UAE, which has proven to be a beneficiary of the ongoing geopolitical tensions between Ukraine and Russia.
Russian President Vladimir Putin, left and Indian Prime Minister Narendra Modi greet each other before their meeting in New Delhi, India, Monday, Dec.6, 2021.  - Sputnik India, 1920, 20.05.2024
Indo-Russian Relations
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