April 20, 2025 – Moscow, Russia: India and Russia continue to maintain a strong trading partnership, despite criticism from Western nations over New Delhi’s stance on economic relations with Moscow. According to The Moscow Times, bilateral trade between the two countries has surged significantly, with India emerging as Russia’s second-largest trading partner.
Growing Economic Cooperation
Since the onset of Western sanctions on Russia, Moscow has increasingly turned to alternative markets, with India playing a crucial role in sustaining trade. Bilateral trade between the two nations jumped from $12 billion before the Ukraine war to $65 billion in 2023. India has expanded imports of Russian crude oil, while its exports of consumer electronics, machinery, and mechanical appliances to Russia have also grown.
Banking and Payment Solutions
To facilitate trade, the Indian Central Bank has allowed Russian entities to open special Vostro accounts, enabling them to hold funds in Indian banks. This move has helped resolve payment issues between the two countries, ensuring smoother transactions.
Shifts in Defense Relations
While economic ties have strengthened, India has reduced its reliance on Russian defense imports, diversifying its military procurement with purchases from France and the United States. The share of Russian defense imports to India declined from 76% in 2009 to 36% in 2023, partly due to delays in deliveries of Russian military equipment amid Moscow’s focus on Ukraine.
Future Outlook
Despite Western pressure, India has maintained a balanced diplomatic approach, prioritizing its strategic autonomy while continuing economic engagement with Russia. As trade relations evolve, both nations are expected to explore new avenues for cooperation, particularly in energy, technology, and infrastructure.
