India has become a vital source for Russia’s high-tech component needs, covering the void left by Western businesses that withdrew after sanctions were placed in response to Moscow’s invasion of Ukraine in 2022. India’s exports have increased thanks to new trade agreements, especially in dual-use technologies that are supposed to have both military and civilian uses.
Russian companies have been turning to Indian suppliers since 2022 for a variety of essential components, such as electronic equipment, automotive parts, and aircraft parts. In an effort to get around Western sanctions, Russia’s Ministry of Industry and Trade has actively partnered with Indian companies to supply goods that were previously sourced from the US and Europe.
These consist of electronic modules, communication systems, and engine parts – items that are crucial for both military and civilian industries. Trends show that over the past two years, trade in these sectors – which was previously quite small – has significantly increased. Russia’s growing oil trade with India has resulted in a stockpile of Indian Rupees, which has made these transactions easier. Notably, Russia has been using its excess Indian rupees – estimated to be about INR8.5 trillion ($102 billion) – to buy products that are no longer available from the West because of export restrictions.
Deepening the cooperation
The fact that Russia is becoming more isolated and has had to adjust by looking for other suppliers in friendly markets is one factor contributing to the growth in trade. India has chosen to deepen its economic relations with Russia rather than openly support Western sanctions, in keeping with its neutral position on the situation in Ukraine. Indian enterprises have leveraged this opportunity to broaden their presence in industries such as machinery and electronics.
A more seamless settlement system between Russia and India has also bolstered the trade dynamic. Nearly 90% of transactions between the two countries are now finished within hours, according to Anatoly Popov, Deputy CEO of Russia’s Sberbank, who was cited by TASS. This is a significant improvement over Russia’s dealings with other countries, including China. Popov stated that the problem of the rupee surplus has mostly been resolved, and as a result, exports to Russia have increased. Nonetheless, the West, especially the US, is becoming concerned about India’s strengthening ties with Russia. Indian companies have been warned by US officials about the potential consequences of secondary sanctions should it be discovered that they are subtly supporting Russia’s military capabilities. India has nevertheless kept growing its trading footprint.
Increasing the imports
Despite the geopolitical sensitivities, India’s Foreign Minister Subrahmanyam Jaishankar stated during a visit to Moscow that New Delhi was prepared to expand economic cooperation. India is making this move in an effort to balance its trade deficit, which has widened as a result of an increase in the import of cheap Russian crude. Russia, on the other hand, wants to increase the variety of its imports. Russian entities have talked about forming joint ventures with Indian companies to set up manufacturing facilities in India in response to embargoes imposed by the West.
Electronics and other products that are currently restricted from export by the West could be produced at these facilities. Such partnerships would support India’s own industrial base and technology sector in addition to guaranteeing Russia’s continued access to vital technologies. Indian producers of medical devices have also been looking into ways to increase their market share in Russia in recent months.

In an April 2024 report, Business Standard cited the Federation of Indian Export Organizations, which stated that over the next five years, medical device exports to Russia could triple, reaching underserved sectors currently hindered by Western sanctions. India’s calculated choice to continue being a major supplier to Russia is indicative of a larger realignment in world trade, as geopolitical forces are reshaping long-standing alliances. India is expected to become an increasingly important trading partner for Russia as its access to Western technology is restricted. This will raise concerns about the global enforcement of sanctions and the future of international trade relations.
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