Agri-Tech and Pharma to Boost Trade Balance with Russia

04-Dec-2025 06:11 PM

New Delhi. Russian President Vladimir Putin is arriving in India today, December 4, 2025, on a two-day visit with a large delegation.

During this visit, bilateral agreements are expected to be signed between the two countries in several areas, including the defense sector. This could significantly improve India's trade balance with Russia.

Indeed, India imports a large amount of crude oil (petroleum) from Russia, consuming significant amounts of precious foreign exchange.

This often tilts the trade balance in Russia's favor. India exports a limited amount of commercial goods and agricultural products to Russia. However, India's capacity has now significantly increased and it is able to increase exports of products in sectors where its prices are internationally competitive.

The top leadership of India and Russia also supports a greater trade balance. The Indian government has identified certain sectors with significant potential for increased exports to Russia.

This includes engineering goods, pharmaceuticals, chemicals, and agricultural products. Within the agricultural products category, India's exports to Russia could be increased, including basmati and non-basmati rice and peanuts.

If both countries agree to balance India's global export potential with Russia's demand, both could benefit significantly. Russia produces neither a single product nor a negligible amount, which India can easily supply.

During the last fiscal year, India and Russia traded for a total of $68.70 billion, with India's exports to Russia accounting for only $4.8 billion, while India's imports from Russia increased to $63.8 billion. Thus, with a huge gap of $59 billion, the bilateral trade balance is tilted in Russia's favor.

Bridging this huge gap will not be easy, but it may be possible to reduce it by increasing exports from India.