New Delhi, In a significant economic development, bilateral trade between India and Russia witnessed an impressive doubling, reaching an estimated $50 billion during January-September. The surge is attributed to robust demand for hydrocarbons in India. Denis Alipov, Russia’s ambassador to India, shared this information, highlighting that trade between the two nations grew by over 200% year-on-year in the first two quarters of the fiscal year 2024.
The key driver behind this surge is the substantial demand for hydrocarbons in India. Moscow has swiftly climbed to become the fourth-largest exporter to India, primarily due to increased oil exports. India’s imports from Russia surged almost five-fold in the last financial year, reaching $46.2 billion.
Ambassador Alipov expressed optimism about the growth trajectory, emphasizing joint projects in crucial sectors like defense, railways, petrochemicals, shipbuilding, and agricultural machinery. He also mentioned the hope for a free trade agreement between India and the Eurasian Economic Union.
However, Rajesh Kumar Singh, the secretary of the Department for Promotion of Industry and Internal Trade, raised concerns about the trade balance, urging attention to the skewed nature of trade between the two nations. During the fiscal year 2023, India faced a $43 billion trade deficit with Russia, prompting discussions about the need for a more balanced trade relationship.
