India for removing trade barriers, boosting exports for more balanced trade with Russia

New Delhi: India on Thursday called for reducing trade barriers and expanding exports to Russia to narrow the widening bilateral trade deficit, which has surged to nearly $59 billion in 2024–25.

Addressing Indian and Russian businesses at the India–Russia Business Forum hosted by FICCI, Commerce and Industry Minister Piyush Goyal said bilateral trade has crossed $70 billion, but remains heavily skewed in Russia’s favour.

Goyal highlighted significant export potential for India in consumer goods, food products, automobiles, tractors, commercial vehicles, smartphones, industrial components and textiles.

He stressed the need to diversify the trade basket, noting “sky is the limit” if both sides work to reduce or remove existing trade barriers.

India’s exports to Russia rose to $4.9 billion in 2024–25, but imports jumped to $63.8 billion, driven largely by crude oil and other energy products. The two nations have set a target of $100 billion trade by 2030, even as India faces steep U.S. tariffs and Russia continues to navigate Western sanctions.

Goyal also pointed to India’s strength in the services sector, saying the country can help address Russia’s estimated three-million-person talent gap.

Maxim Oreshkin, Deputy Chief of Staff in the Russian Presidential Executive Office and part of President Vladimir Putin’s delegation, said India accounts for less than 2 per cent of Russia’s imports and urged higher supplies from India across six key segments — agriculture, pharma, telecom equipment, industrial components and human resources. He said Russia is ready to support Indian businesses through smoother logistics, payments and certification.

Commerce Secretary Rajesh Agrawal underlined the need to simplify procedures to help India meet the $100-billion target and make trade more balanced. He noted gaps in India’s shipments to Russia in sectors such as automobiles, components, textiles, leather, pharma, healthcare and IT services, and stressed the importance of harmonised regulations and predictable rules. “Can we lay down procedures that act like a bridge rather than a hurdle?” he said.

Agrawal added that the first round of negotiations between India and the Russia-led EAEU concluded last week, opening new opportunities in goods and services. He also called for exploring a bilateral framework to boost services trade.

India’s top exports to Russia include machinery, pharmaceuticals, organic chemicals, smartphones, shrimp, meat and garments. Imports remain dominated by crude oil, followed by petroleum products, coal, fertilisers, sunflower oil and diamonds.

Both sides agreed that unlocking the full potential of bilateral commerce will require streamlined rules, deeper regulatory cooperation and renewed efforts to diversify trade flows.