India's economic relationship with Russia is often described as one of the most resilient strategic partnerships in the world. Yet in spite of the strength of diplomatic ties there is a widening trade deficit that has become one of the largest bilateral imbalances in India's external trade portfolio. The challenge before policymakers today is not merely to sustain trade growth but to make it more diversified, balanced, and future-oriented. One promising avenue is bioenergy collaboration through bilateral investments.
The numbers tell a striking story. India-Russia bilateral trade has surged from about $13 billion in 2021 to nearly $68-69 billion in FY2024-25, driven overwhelmingly by India's purchases of discounted Russian crude oil. However, India's exports to Russia have remained below $5 billion, resulting in a trade deficit approaching $59 billion.
