Russia’s ongoing conflict with Ukraine and the resulting international sanctions have significantly impacted India’s export landscape. Over the past financial year, India saw a substantial increase in the export of engineering goods, machinery, machine parts, and aircraft spares to Russia, while traditional exports such as pharmaceuticals, tea, coffee, and tobacco either stagnated or declined, as per a report. Despite the growing interest from Russia to import Indian goods, exporters face challenges due to the fear of sanctions and the reluctance of banks to process transactions. Industry experts suggest that some goods destined for Russia may be rerouted through the UAE, which has benefited from the geopolitical tensions between Ukraine and Russia. Russia has become India’s fourth-largest trading partner, with total trade estimated at $65.7 billion, driven largely by substantial oil imports. However, this trade relationship has also resulted in India having a significant trade deficit with Russia, second only to China, standing at over $57 billion.
