Since it launched a war against Ukraine earlier this year, Russia has become India’s fifth-largest trading partner, mostly thanks to coal and oil trade. In April-September this year, the two-way trade zoomed to a record $22.6 billion.datawrapper-chart-zprCp.Yet, India’s trade deficit with Russia has only swollen to $20 billion by now.
Russia has a shopping list for India
India and Russia have a history of strategic, military, economic, and diplomatic relationships. That’s why India has refrained from openly criticizing Russia for its aggression against Ukraine.Putin’s regime, therefore, views India as an alternative source of resources.With global car companies such as Ford, Mercedes-Benz, Toyota, Honda, BMW, Nissan, and Renault suspending operations in Russia, automobile parts are in high demand there. Airlines running fleets of foreign-made planes and mining companies, too, are in a soup.Russia’s wish-list for India runs nearly 14 pages. Besides car engine parts, it includes infotainment systems, landing gear components, fuel systems, life jackets, and airplane tires, among others, Reuters reported.It also mentions raw materials and equipment to produce paper, paper bags, consumer packaging, yarns, dyes, and more.
Indian exporters are wary of western sanctions
Russia’s desperation throws up a $10 billion potential for Indian exports over the next few months, Reuters quoted government sources. For starters, it could help reduce India’s trade deficit with that country.Yet, Indian exporters are hesitant.