Trade rebalance: Russia encourages Indian business delegations across sectors
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Russia 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 increase sourcing and check the worsening trade imbalance between the two countries, industry sources said.
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 the April-September period, cumulative exports to Russia were down 14.4 per cent to $2.24 billion, but exporters are hopeful that things may improve.
“The Russian industry is certainly showing more interest in Indian goods now and in response multiple delegations from India are going to the country. A food and agriculture delegation is just back from the country after successful discussions. Another delegation is set to leave for Moscow later this week to participate in an international tools exhibition. There are many others lined up,” pointed out Ajay Sahai from Federation of Indian Export Organisations (FIEO).
The Indian government 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.
$59 billion trade deficit
In FY25, 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, too, acknowledged the need to buy more from India. “More agricultural products may be purchased from India. Certain steps can be undertaken from our side for medicinal products, pharmaceuticals,” Putin said at the Valdai Discussion Club annual international conference.
The food and agri delegation from India, that visited Moscow and St Petersburg on October 28–31, 2025, participated in buyer-seller meetings and B2B networking events, showcasing products like ready-to-eat meals, snacks, pulses, and frozen foods to Russian buyers and distributors. “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,” according to FIEO.
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 (after the Ukraine attack) are now making them more open to Indian goods.
Engineering goods is another sector that has got a good response in Russia with exports at about $1.26 billion in FY25 set for further growth. “There is very good scope for Indian engineering goods in Russia,” said Pankaj Chadha, Chairman, Engineering Export Promotion Council (EEPC) India.
Concerns on third country sanctions from the West are lower now as there is a greater awareness amongst exporters on dual-use goods, another exporter said.
“Exporters are not so apprehensive about sanctions now and are not holding back due to such concerns,” an exporter of electronics said.
Encouraged by the good response, FIEO is proposing to organise a business delegation featuring multiple sectors 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 & appliance, household goods & kitchenware, lifestyle products & accessories, stationery and paper products, toys & baby products and footwear & apparel.
Published on November 9, 2025
