India-Russia Trade Deficit in Focus Ahead of Putin’s Visit

Russian President Vladimir Putin’s two-day visit to India is expected to bring attention to the country’s widening trade gap with Russia. Both nations are preparing to discuss trade growth, investment opportunities and ongoing negotiations for a free trade agreement. The focus comes as the two countries aim to push bilateral trade to US$100 billion by 2030, up from US$68.7 billion in FY25.

India-Russia Trade Deficit Remains a Major Concern

Official data shows that India’s exports to Russia in FY25 were only US$4.88 billion, while imports were much higher at US$63.84 billion. Agricultural products, chemicals, pharmaceuticals and limited iron and steel make up most of India’s exports.

In contrast, crude oil dominates India’s imports from Russia. Since the start of the Russia-Ukraine conflict, India has sharply increased its crude purchases from Russia due to attractive discounts. This has shifted trade patterns and widened the deficit further.

How Much Crude Oil Has India Imported From Russia?

Before 2022, Russia played a very small role in India’s crude oil supply. Annual imports usually remained around US$2–3 billion and made up only 1–2% of India’s total crude basket. 

However, the situation changed dramatically in 2022. As sanctions pushed Russian oil towards Asia, India increased its purchases to US$25.5 billion, raising Russia’s share to nearly 15%.

The trend strengthened in 2024, when India imported US$52.7 billion worth of crude oil from Russia, giving the country a sizeable 37.3% share of India’s total imports. In 2025, up to September, imports had already reached US$33.5 billion. 

This rapid growth in oil purchases has been a sticking point in India–US discussions, with the US imposing additional penalties on Indian goods.

Push for a Free Trade Agreement

India and the Eurasian Economic Union (EAEU) (comprising Russia, Armenia, Belarus, Kazakhstan and Kyrgyz Republic) are working on a free trade agreement. The terms of reference were signed in August with an 18-month plan to help Indian businesses diversify into new markets. Putin’s visit and the 23rd India-Russia annual summit are expected to give further direction to these talks.

Read more: Rupee Falls Past 90 per Dollar: A Four-Decade Slide Reaches a New Milestone.

Conclusion

India hopes that stronger trade ties, a potential free trade agreement and rising investment flows will help reduce its trade gap with Russia. However, the heavy dependence on crude oil imports remains a key challenge as both sides push towards the US$100 billion trade target by 2030.

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