However, New Delhi has said it aims to address the “trade imbalance”: India exports only around a $1 billion of goods to Russia, per official figures.
In this regard, the Federation of Indian Export Organizations (FIEO), India’s apex exporter organization, is currently leading a 50-member delegation to Russia to explore opportunities for Indian companies in the Russian market.
Dr Ajay Sahai, the Director General & CEO of FIEO, spoke to Sputnik in an exclusive interview:
Sputnik: A 50-person FIEO delegation from the agriculture and food industry is visiting Russia to explore new trading opportunities. Do you think that there is potential for Indian firms to expand presence in the Russian market, given that some Western firms have withdrawn from Russia?
Ajay Sahai: Russia’s imports are considerable. Now, with the sanctions in place, India has emerged as one of the key suppliers as it has the capability to export a wide range of products, both from traditional sectors as well as sunrise sectors.
Moreover, we have worked out the Rupee settlement mechanism to boost our exports to Russia. We expect a growth of about 60% this year to take it to $5 billion.
The rising trade deficit with India which crossed $40 billion in 2022-23 gives us the opportunity to exponentially increase our exports.
Sputnik: What Indian products are the most sought-after in the Russian market? Are there new products or brands that the Russian buyers can explore?
Sahai: India needs to diversify and expand the basket of goods for exports to Russia by exploring possibilities in automobiles and spare parts, electronic goods, medical devices, solar photovoltaic modules, textiles, food and agricultural products, etc.
In agriculture sectors, the new products could be ready-to-eat meals, animal feed, fish meal, soya beans, etc. There is a growing demand for these products in the Russian market.
Sputnik: What advantages do the Russian market offer to Indian exporters as compared to other nations?
Sahai: The India-Russia partnership is a subject of discussion among countries across continents, not because it has changed, but because it has not changed. We two countries have been friends for decades and have stood by each other.
Our marginal share in Russian imports encourage us to increase our exports to Russia and cement the partnership further.
The Rupee payment settlement offers another advantage. We are looking to add $5 billion in exports through this mechanism over the next 12 months.