Russia
India intensifies efforts to reduce trade deficit with Russia; focuses on exports
New Delhi: The Union Commerce Ministry has intervened to address the increasing trade deficit between India and Russia, media reports said.
The ministry has asked the Export Promotion Councils (EPCs) to identify supplementary products that India can offer to Russia, aiming to enhance India's exports to the country, Moneycontrol.
Government data indicates that India's trade deficit with Russia amounted to $34.79 billion during the period between April 2022 and January 2023.
This increase in the trade deficit is the result of India's purchases of Russian crude oil.
Russia, previously ranked as India's 25th largest trading partner in FY22, has now ascended to the second position, surpassed only by China.
“We are looking at having some balance in trade with Russia. We need to increase our exports. India is looking to push exports of textiles and agricultural products to Russia. All Export Promotion Councils have been notified to identify the potential of India’s exports,” a senior government official told Moneycontrol.
In the financial year 2022-23, India witnessed a substantial surge in its merchandise imports from Russia, with a staggering increase of 369 percent with imports rising from $9.87 billion in 2021-22 to $46.3 billion.
Notably, nearly two-thirds of these imports comprised of crude oil, as India diversified its sources away from costlier Middle Eastern crude following the Russian invasion of Ukraine.
This shift in import patterns led to an increased trade deficit between the two countries.
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