Russia no longer wants to limit its trade relations with India to just oil and energy, but is preparing to take it to a new level. The Russian government and the companies there are very serious about setting up ‘joint ventures’ in India. Russia’s Trade Representative Andrey Sobolev has clearly said that India is an ‘absolute priority’ in Moscow’s foreign economic agenda. The main objective of this initiative is to manufacture products in India and increase mutual trade.
In which areas will both countries work together?
Russian companies are in talks to start local production in India in many important sectors. According to the report, there are plans to start joint ventures in areas like engineering, shipbuilding, information technology (IT), renewable energy, oil processing and metallurgy. Andre Sobolev says that Russian companies are not only looking at India as a market, but they also want to supply goods to South Asia and other international markets by setting up production units here. On the other hand, Indian companies are also exploring new business opportunities in Russia.
Northern Sea Route: New way of trade
Another major area of cooperation between the two countries is the ‘Northern Sea Route’. Sobolev said this route could prove to be a game-changer for logistics and shipping. This sea route passes through the Arctic region of Russia and connects European Russia to the Far East. This approximately 5,600 kilometer long route passes through the Bent and Kara Seas and reaches the Bering Sea. India and Russia have agreed to create a stable cargo base on this route and set economic standards for transportation.
Target of 100 billion dollar business
Big targets have also been set to take business figures to new heights. According to Ajay Sahay, Director General of Federation of Indian Export Organizations (FIEO), the two countries aim to take bilateral trade to $100 billion by 2030. India is trying to double its exports of goods and services to Russia to reach $10 billion. Ajay Sahay said that India’s share in the $100 billion target should be $30-35 billion, while imports from Russia are expected to be around $60-65 billion.
At a Glance: Key Sectors and Future Plans
The main points of these new trade discussions going on between Russia and India can be easily understood in the table given below:
Topic Details Focus Sector Engineering, Shipbuilding, IT, Renewable Power, Oil Processing, Metallurgy. Main objective: Localization of products and supply in South Asia. New logistics route Northern Sea Route (5,600 km in the Arctic region). Target total trade by 2030 $100 billion (India’s export target $30-35 billion).
Strengthening partnership on the global stage
The emphasis on economic cooperation has increased since the annual India-Russia summit held in December. Forums like the St. Petersburg International Economic Forum (SPIEF) are also supporting this partnership, where new deals in AI, pharmaceuticals and logistics are being discussed. For example, Indian firm API-M is involved in a project to set up a high-tech plant in the Orenburg region of Russia. These efforts show that despite global challenges, both countries are ready to support each other in technology and manufacturing beyond energy.
Last Updated: 16 January 2026
