Russia Becomes India’s 7th Biggest Trading Partner With 441% Jump in Oil, Fertilizer Supplies

In the 2021-2022 financial year, Russia ranked 25 among India’s trading partners, with $13.12 billion bilateral trade. At the annual summit last December, India's Prime Minister Narendra Modi and Russian President Vladimir Putin vowed to achieve $50 billion in bilateral trade by 2025.

India’s imports from Russia have risen 441.85 percent to $17.2 billion between April and August, according to the latest trade data released by the Indian government.

Bilateral trade between the two strategic partners stood at $18.2 billion in the first five months of the current financial year, making Russia India's seventh-biggest trading partner. The massive rise in bilateral trade was mainly fueled by a surge in the purchase of oil, coal and fertilizers from Russia.

Last year, bilateral trade between the two countries stood at $13.1 billion against $8.1 billion in 2020-21.

In 2021-22, however, India’s imports from Russia witnessed 80 percent growth against 2020-21, indicating strong demand for Russian commodities among Indian businesses.

As New Delhi vowed to continue its oil and fertilizer purchases from Russia despite the West’s pressure, there is an indication that Russia may end the current financial year among India’s top five largest trading partners. The top position is currently held by the United States, with $57.6 billion in bilateral trade, followed by China ($50.8 billion) and the UAE ($36.8 billion).

Meanwhile, Indian businesses hope that their exports to Russia will rise to $5 billion by March 2023, with the opening up of the Rupee-based trade settlement mechanism: UCO Bank and Yes Bank have teamed up with Russian lenders to facilitate trade in rupees, sources in New Delhi told Sputnik earlier.

As such, Russia's Gazprombank opened a special rupee account with UCO Bank, while Russia’s Petersburg Social Commercial Bank tied up with YES Bank.

Last Month, PM Modi stressed the importance of greater economic and commercial engagement between the two nations in line with the ‘Special and Privileged Strategic Partnership’.

Modi also referred to other “potential areas of economic cooperation including diamonds, coking coal, steel, timber etc.”

India has maintained its stance of neutrality amid the ongoing crisis in Ukraine and has continued active trade and military cooperation with Russia, despite Western criticism, saying that regular oil supplies ensure India's national interests.