At a time when Russia is facing the heat of Western sanctions, it comes as no surprise that Moscow is encouraging business delegations from India in multiple sectors, such as processed and packaged food, marine products, beverages, engineering goods, consumer electronics and household goods, in a bid to diversify and increase sourcing. New Delhi is likely to welcome the move, as it will check the worsening trade imbalance between the two countries.
The results have been encouraging. India’s exports to Russia in September 2025 increased for the first time this fiscal, posting a 11.1 per cent (year-on-year) growth to $405.12 million. In April-September, cumulative exports to Russia were down 14.4 per cent to $2.24 billion.
Although Russians traditionally prefer Western products as these are perceived to be of better quality and associated with higher social status, the changed geopolitical realities following Western economic sanctions are now making them more open to Indian goods. Concerns about third-country sanctions from the West are lower now, as there is a greater awareness amongst exporters on dual-use goods. “Exporters are not so apprehensive about sanctions now and are not holding back due to such concerns,” affirmed an exporter of electronics.
“The Russian industry is certainly showing more interest in Indian goods now and, in response, multiple delegations from India are going to the country,” pointed out Ajay Sahai of the Federation of Indian Export Organisations (FIEO). “A food and agriculture delegation is just back from the country after successful discussions, while another delegation is set to leave for Moscow later this week to participate in an international tools exhibition. There are also many others lined up”.
India has been repeatedly pointing out to Russia the need for a greater balancing of trade ties, which tilted heavily towards Moscow after India increased its purchase of discounted Russian oil, following the Russia-Ukraine conflict in 2022. In 2024-25, India’s imports from Russia totalled $63.84 billion, led largely by oil, while exports were at $4.88 billion, creating a trade deficit of about $59 billion.
Last month, Russian President Vladimir Putin also acknowledged the need to buy more from India. “More agricultural products may be purchased from India,” Putin said at the Valdai Discussion Club annual international conference. “Certain steps can be taken from our side for medicinal products, pharmaceuticals, etc”.
Buyer-seller meetings
The food and agri delegation from India, which visited Moscow and St Petersburg during 28-31 October 2025, participated in buyer-seller meetings and B2B networking events. “The trip was aimed at strengthening India-Russia agricultural trade ties, with participants visiting major Russian distributors to discuss business and potential new market entry strategies,” informed the FIEO.
Engineering goods is another sector that has got a good response in Russia, with exports at about $1.26 billion in 2024-25 set for further growth. “There is good scope for Indian engineering goods in Russia,” said Pankaj Chadha, chairman, Engineering Export Promotion Council (EEPC) India.
“Russia has been an important business partner for India, and the engineering and tools sector presents significant potential for collaboration,” said S.C. Ralhan, president, FIEO, which is leading the delegation. Exports of engineering goods to the US, India’s largest market, declined by 9.4 per cent year-on-year to $1.40 billion in September, industry estimates showed, while total exports to the US fell to $5.4 billion from $6.9 billion in August.
Encouraged by the good response, FIEO is proposing to organise a business delegation to Moscow (Russia) and Minsk (Belarus) during January/ February 2026. The delegation will primarily focus on Fast-Moving Consumer Goods (FMCG) and Fast-Moving Consumer Durables (FMCD) sectors. These include processed & packaged foods, beverages (tea, coffee, juices, etc.), personal care & beauty products, home cleaning & hygiene products, consumer electronics & appliances, household goods & kitchenware, lifestyle products & accessories, stationery and paper products, toys & baby products and footwear & apparel.
The visits are also seen as part of a broader strategy to tap new markets. US President Donald Trump has doubled tariffs on Indian imports into the US to 50 per cent as punishment for India’s purchases of Russian oil, driving bilateral relations to their lowest point in decades, though the two countries are now trying to reach a trade deal.