India-Russia Trade Skyrockets 5X to $68.7 Billion as Moscow Pivots

ECONOMY
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AuthorVihaan Mehta|Published at:
India-Russia Trade Skyrockets 5X to $68.7 Billion as Moscow Pivots
Overview

India has emerged as one of Russia's fastest-growing trade partners, with bilateral trade surging to an all-time high of approximately $68.7 billion in the financial year 2024-25. This represents a nearly five-fold increase from about $13 billion in 2021. Russian Prime Minister Mikhail Mishustin highlighted this rapid expansion amid Moscow's redirection of energy flows and a broader global economic realignment favouring the Global South and East.

Geopolitical Realignment Fuels Trade Surge

India's trade relationship with Russia has witnessed an unprecedented surge, with bilateral commerce reaching a record $68.7 billion in the financial year 2024-25. This dramatic ascent, from just $13 billion in 2021, underscores Moscow's successful pivot towards 'friendly countries' amidst unprecedented Western sanctions.

Economic Data Highlights

Russian Prime Minister Mikhail Mishustin revealed that the share of these friendly nations in Russia's total trade turnover has climbed to a historic 86 percent. India, alongside China, Belarus, and Kazakhstan, demonstrated significant growth within this new trade architecture. Both nations have set an ambitious goal to elevate bilateral trade to $100 billion by 2030, signaling a deepening economic partnership extending beyond energy into pharmaceuticals, defence, and technology sectors.

Shift to National Currencies

Further bolstering these ties, Russia has accelerated its transition to settlements in national currencies. From January to October, these currencies accounted for 85 percent of Russia's trade turnover with all partners, surpassing their target of 70 percent. The Russian ruble alone comprised over half of all settlement transactions, reflecting a deliberate move away from Western financial systems.

Global Economic Shift

Mishustin noted this trend aligns with a larger global economic redistribution, where the influence of the Global South and East, particularly BRICS nations, is growing at the expense of the G7. This strategic realignment positions India as a crucial economic partner for Russia during a period of significant global flux.

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