Russia is now regarded as India’s seventh largest trading partner-up from its 25th position last year – fuelled by a surge in the import of oil and fertilizers as an aftermath of the war in Ukraine. India’s bilateral trade with Russia between April and August 2022 raised to a record high $18.2 billion.
During the first 5 months of 2022-23, the 6 countries which recorded higher volumes of trade are the US with $57,632.37 million, China with $50,792.83 million, UAE with $36,820.33 million, Saudi Arabia with $23,995 million, Iraq with $18,822.27 million and Indonesia with $18,816.58 million. India’s imports from Russia have typically included petroleum oil and other fuel items and fertilizers, mixed in with consumables like coffee and tea, spices and animal and vegetable fats.
Russia’s share in India’s oil imports rose from a mere 1% in February before the Ukraine war to 21% by September this year. India’s buy of Russian refined products intensified with fuel oil imports reaching approximately 1,00,000 bpd in September, up from an average of nearly 60,000 bpd in the initial quarter of 2022. According to analysts, India may consider importing more Russian crude this quarter as refiners ramp up runs to meet the seasonal rise in domestic demand and higher export demand from Europe.
Imports accounted for $17,236.29 million, while exports to Russia stood at just $992.73 million, out of the total India-Russia bilateral trade of $18,229.03 million during the 5 months. Russian imports have surged over 500 per cent year-on-year during the period of June-August.