India-Russia trade surged 12x in a decade: What's the reason?
What's the story
India and Russia have seen a massive jump in their trade relations over the last decade, according to Moneycontrol analysis. The total trade between the two nations has surged nearly 12 times from $6.1 billion in 2015 to around $72 billion in 2024. This is way higher than the $30 billion target both nations had set back in 2015. The surge in India-Russia trade has been largely fueled by a massive increase in imports, especially crude oil.
Trade dynamics
Spike in imports drives trade growth
Between 2015 and 2024, India's exports to Russia tripled to $4.8 billion while imports skyrocketed 15 times to $67.2 billion. A major chunk of this spike is due to India's energy purchases, with oil imports alone surging nearly 500 times to $55 billion in 2024.
Composition
Oil now makes up for over 80% of imports
Oil now constitutes a whopping 83% of India's total imports from Russia, up from just 2.5% in 2015. In contrast, non-oil imports have only grown by a meager 2.6 times during the same period. The change in trade composition shows how much India relies on Russian oil to meet its energy needs and boost bilateral trade relations.
Export trends
Change in export-import composition
As bilateral trade has grown, so has its composition. Capital goods now account for a third of India's exports to Russia, doubling their share from 17.5% in 2015. However, the share of consumer goods, agricultural products and raw materials has fallen during this period. Meanwhile, capital goods imports from Russia have plummeted from 2.3% of total imports in 2015 to just 0.3% in 2024.
Investment increase
Russian investment in India has grown by 30% since FY15
Russian investment in India has also grown by 30% since FY15. Foreign Direct Investment (FDI) from Russia rose to $1.3 billion in 2024, up from $1 billion a decade ago. However, Russia's position as an FDI source has slipped and it is now India's 30th-biggest FDI partner, down from the 19th position it held in 2015.