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International Relations GS 2 In the news 3 times

India-Russia Trade

From Marginal to Strategic

Before 2022, Russia was a relatively minor trading partner for India — bilateral trade was approximately $13 billion. Post-sanctions, India dramatically scaled up Russian crude oil imports at steep discounts (15–20% below market prices), helping India manage its import bill while providing Russia a vital cash flow despite Western restrictions. By FY2024-25, India-Russia bilateral trade exceeded $65 billion, with Russia becoming India's top crude oil supplier (over 40% of India's crude imports at peak). Payment mechanisms evolved from US dollar clearing to rupee and UAE dirham-based settlement.

Key details
  • Russia's share of India's crude oil imports rose from ~2% (pre-2022) to >40% (2024-25 peak)
  • India received crude at discounted "Urals" prices — saving an estimated $10–15 billion in the 2022-24 period
  • The accumulated rupee surplus in Russian vostro accounts reflects the trade imbalance: India imports far more from Russia than it exports
  • Russian goods for which rupees could be used: Indian pharmaceuticals, machinery, agricultural products
In the news

Tracked since March 19, 2026 · last seen July 05, 2026 · updates as the daily brief publishes

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