New data points highlight a robust economic link between India and Russia, with trade turnover for January through October 2023 reaching nearly 55 billion dollars. This figure was shared by Denis Alipov, the Russian Ambassador to India, during a plenary session at the India-Russia business dialogue, as reported by TASS. The moment underscored how bilateral commerce has grown to become a strategic pillar of the relationship, spanning energy, minerals, and industrial goods.
Alipov noted that Russia has become a key supplier to India, accounting for a significant share of imports such as mineral fertilizers and diamonds. He observed that the collaborative supply chain supports India’s agricultural inputs and precious materials sectors, contributing to certainty in procurement and price stability for buyers in India. This positioning reflects a broader pattern of diversified sourcing and long term contracts that aim to reduce exposure to single-market fluctuations.
The ambassador also affirmed Russia’s continued leadership in providing hydrocarbon raw materials, a sector deemed essential for India’s energy security and industrial growth. The emphasis on oil and gas ensures India’s ability to sustain manufacturing, power generation, and mobility needs, particularly in a regional climate marked by evolving energy dynamics and price volatility.
Earlier statements from the Russian diplomatic mission in New Delhi highlighted a record-level bilateral trade turnover of 48.8 billion dollars for the first nine months of the year. This milestone sits alongside the total volume of 39 billion dollars recorded for the entire year 2022, illustrating a sustained upward trajectory in the bilateral economic relationship despite broader global uncertainties.
On the sovereign finance side, late last week there was news about Russia increasing its foreign debt to 777 million dollars from India, making India the only foreign creditor that expanded its exposure to the Russian Federation in 2022. In contrast, Russia’s debt to South Korea saw a notable decrease of 24 percent to 209.8 million dollars, and its debt to France declined by roughly 1.8 times to 177.8 million dollars. These movements reflect shifting credit dynamics and the evolving landscape of international lending between the two countries and their partners.
Across the policy dialogue, there were discussions about new mechanisms for utilizing Russian currency reserves, including potential use of ruble-denominated arrangements to facilitate bilateral transactions. Indian authorities have shown interest in exploring options that could streamline settlement processes, reduce currency risk, and enhance financial resilience for ongoing trade commitments. The exchanges signaled a willingness on both sides to deepen financial coordination while maintaining prudent risk management standards.
Looking ahead, observers anticipate continued growth in joint ventures, steady expansion of energy cooperation, and an uplift in the trade mix through diversified sectors. The ongoing collaboration aims not only to boost short-term exchange volumes but also to build longer-term resilience, integrate supply chains, and support industrial capacity building in both economies. The dialogue remains a focal point for aligning strategic interests and consolidating a mutually beneficial economic partnership.