India received a lot of backlash from western world for its heightening trade relations with Russia as the world’s third largest oil importer started sourcing more oil from Russia. Oil imports from Russia grew tenfold in 2022 and doubled again in 2023. Coal imports also rose up to three times, owing to the heavy discount Russia provides on its fossil fuels.
Growing defence trades
India has always been a major market for Russian arms and defence industry and recently became its largest defence importer. In the last twenty years 65% of India’s total weapon purchases came from Russia amounting more than USD 60 billion as per Stockholm International Peace Research Institute (SIPRI)
Record oil imports
In order to find new export markets after sanctions, the Kremlin provided huge discounts on coal, oil and fertilizers to India so the country could finance its war.
Russian crude oil deliveries to India reached a new record of 2.1 million barrels per day (b/d), according to the financial analytics firm S&P Global.
93% of the total trade in Russia’s favor
The total India-Russia bilateral trade figure for 2023 was USD 65.6 billion, a record high as per Department of commerce The trade however is heavily inclined towards the Russian side as India imports USD 61.4 billion worth of goods, including oil, precious stones, fertilizers, and metals.
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India-Russia relations
India proves to be an epitome of friendship as it continues to be Russia’s one of the biggest trade partners. Cold war era relations still hold a prime position in India’s diplomatic relations as the Prime Minister announces USD 100 billion trade target by 2030.
“For long, we have looked at Russia from a political or security perspective,” Indian Foreign Minister Subrahmanyam Jaishankar said at an industry conference in May. “As that country turns eastwards, fresh economic opportunities are presenting themselves ... the spike in our trade and new areas of cooperation should not be regarded as a temporary phenomenon.“
Balancing the East and the West
India justifies its fossil imports from Russia under the cover of traditional friendly relations and being a heavy oil dependent nation but the west has been overly critical since the Modi’s visit to Russia. Under these situations India is currently treading on thin ice since the country can not fully rely on Russia as it also aims to sustain strong links with the west and maintain a neutral approach in its global diplomatic relations.
About the Author
Akshat Jain is pursuing his post-graduation from School of Economics, DAVV. He is interested in economics, research, music and literature.
