Putin ready to dent India’s trade deficit while securing defence, energy deals
Vladimir Putin and Modi, in their bilateral meeting on Friday, are also expected to set up a timeline for the proposed free trade agreement between India and the EAEU bloc (file photo)
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Reuters
Russian President Vladimir Putin is arriving for a two-day visit to India on Thursday with a delegation of senior Ministers and top business leaders across sectors, with a clear message that Russia is ready to procure more from India and dent the widening trade deficit while securing its defence and energy deals.
In FY25, India’s imports from Russia totalled $63.84 billion, while exports were $4.88 billion, widening the trade deficit to about $59 billion. New Delhi has been insisting that addressing the deficit should be given priority.
Wider assurances
Amid US tariffs hurting Indian exports, Moscow is likely to extend to India assurances of wider sourcing of medicines & devices and food products. It is also looking to set up a dedicated manufacturing corridor for technical textiles and automobiles, secure an agreement on increased mobility of workers, and deepen cooperation in digital technology and AI. An agreement on local currency trade is also likely, sources said.
“There is a realisation in Russia that it can’t expect India to continue oil and defence purchases, including SU-57 fighter jets and S-400, in the face of mounting Western pressure, without responding to Delhi’s demand for higher imports of Indian goods and more access for professionals. Putin’s visit thus has several dedicated sessions on greater sourcing from India,” a source tracking the matter said.
While India’s import of oil from Russia is getting affected after US sanctions on two top Russian oil companies kicked off last month, New Delhi has so far resisted banning Russian oil, despite a 25 per cent penalty imposed by the US in addition to 25 per cent reciprocal tariffs on Indian goods.
FTA timeline
Putin and Prime Minister Narendra Modi, in their bilateral meeting on Friday, are also expected to set up an ambitious timeline for the proposed free trade agreement between India and the EAEU bloc comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, the source added.
A number of top Ministers from Russia, including Maxim Oreshkin, Deputy Chief of Staff of the Presidential Executive Office, Maxim Reshetnikov, Minister of Economic Development, Oksana Lut, Minister of Agriculture, Mikhail Murashko, Minister of Health, Alexey Gruzdev, Deputy Minister of Industry and Trade, Sergey Kuchushev and Deputy Minister of Digital Development, Communications are scheduled to highlight new opportunities for Indian exporters in a dedicated session with Indian policy makers and businesses.
“We know that our Indian friends are concerned about that (the trade deficit). We are jointly looking at the possibilities of increasing imports from India. We want to buy more from India,” Kremlin spokesperson Dmitry Peskov said at a media briefing on Tuesday.
According to the exporters’ body FIEO, there is a strong potential in expanding Indian exports of high-value goods such as pharmaceuticals, chemicals, engineering goods, as well as services. The Russians could invest in infrastructure, manufacturing, green energy, railways, mining and technology sectors.
Published on December 3, 2025
