Bilateral trade between India and Russia reached a record $66 billion in 2024, marking a fivefold increase over the past five years.
New Delhi: In a major strategic move, India and Russia have strengthened their ties, leading to a twofold increase in trade through the International North-South Transport Corridor (INSTC). This comes amid US sanctions on trade with Moscow. The Modi government has also increased its export volume as part of its strategy to reduce its trade deficit with Moscow. This surge in trade between India and Russia has also benefited Iran, a key ally of India.
In terms of cargo volume and geographical coverage, the corridor’s eastern route is considered the most convenient among its three branches. While speaking to The Economic Times from Moscow, Dmitry Krukov, Deputy Director of Multimodal Services at Russian Railways Logistics, stated that accelerating railway deliveries from Russia through Turkmenistan and Kazakhstan to Iran’s Bandar Abbas port has significantly reduced delivery times along INSTC’s eastern branch.
Krukov further added that trains take approximately 16 days to reach Bandar Abbas from the Moscow region and 11 days from Russia’s Chelyabinsk region, which is three times faster than two to three years ago. Last year, the cost of supply along INSTC’s eastern route dropped by over 56%, while the volume of transportation on this route increased 1.7 times.
Through INSTC’s eastern route, India exports various goods to Russia, including construction materials, textiles and footwear, rice, plastic, rolled iron, confectionery, spices, and food concentrates. Meanwhile, Russia exports paper products, wood, hygiene products, furniture, roofing materials, food, and other goods to India.
Record USD 66 Billion Trade
Bilateral trade between India and Russia reached a record $66 billion in 2024, marking a fivefold increase over the past five years. Both countries have set a trade target of $100 billion by 2030. The trade deficit between them stood at approximately $25.11 billion.
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