India’s imports from Russia have skyrocketed nearly twelve-fold — from $5.48 billion in 2020–21 to $63.81 billion in 2024–25 — driven largely by discounted oil purchases, according to data from the Ministry of Commerce. In contrast, Indian exports to Russia have grown by just 84% over the same period, highlighting persistent challenges faced by Indian businesses in tapping the Russian market.
The sharp rise in imports comes even as New Delhi explores ways to strengthen its trading relationship with Moscow. After the United States imposed tariffs on Indian goods, Russia signalled its readiness to open its market to Indian exporters. However, a combination of non-tariff barriers, weak demand, and payment-related constraints has limited India’s export potential.
A government official familiar with the developments said the core issue is Russia’s limited appetite for Indian products. “There is hardly any market for Indian carpets — which are among our major exports to the US — in Russia,” the official said. Indian pharmaceutical products have some potential, but other export categories continue to face lukewarm demand.
One area with room for growth is packaged food and FMCG products. But here too, strict quality norms and certification requirements pose challenges. “Russians prefer products that meet Western standards. Indian goods often don’t match those quality expectations. Exporters will need to improve quality to compete,” the official noted.
A bigger roadblock, however, is the absence of a reliable payment mechanism. With Russian banks cut off from the SWIFT international payments system following Western sanctions over the Russia–Ukraine conflict, Indian traders say receiving payments for shipments has become increasingly difficult.
“No Indian bank is willing to accept wire payments from Russia. India needs to develop an alternative mechanism to ensure that exporters get paid,” the official added.
While crude oil remains the driving force behind the surge in imports, several other commodity categories have also shown strong upward movement. Imports of mineral oils rose nearly 27 times between 2020–21 and 2024–25, purchases of animal and vegetable fats increased more than eight-fold, and fertilizer imports nearly tripled.
The widening trade imbalance underscores the need for structural solutions. Unless sustainable payment channels and market access pathways are developed, India’s export growth to Russia is likely to remain muted even as imports continue to grow.
