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.
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.