History of trade between Russia and India

Commercial relations between Russia and India have a long history, full of both periods of active interaction and times of relative calm. These ties have always been an important aspect of the economic development of both countries.

Beginning of business interaction

The first documentary evidence of trade between Russia and India dates back to the XV^th century. The merchant from Tver Afanasy Nikitin travelled to India and described his experience in his book “A Journey Beyond the Three Seas”. Furs, textiles and spices were the main items of trade during this period. The route passed through Persia and Central Asia, and these were difficult and lengthy expeditions.

Already in the XVII^th century, Russian merchants began to visit India on a regular basis. Astrakhan and Bukhara became the main centers of Russian-Indian trade. Furs, metal products were imported to India, while fabrics, precious stones, tea and spices were exported from India.

XXth century

In the XX^th century, Russian-Indian relations reached a new level. When India gained independence in 1947, the countries established diplomatic relations. The Soviet Union supported India in the development of industry and infrastructure. Cooperation projects in metallurgy, energetics and engineering were developed. Economic partnership became a strategically significant area for both countries. Trade was conducted mainly on a barter basis, which allowed circumventing the restrictions of the global monetary system.

During this period, economic ties between Russia and India strengthened markedly. The main goods exported from the USSR to India were machinery, equipment and military hardware. India, in its turn, exported tea, coffee, textiles and other consumer goods to the USSR.

Modern period

In the post-soviet period, economic cooperation between Russia and India was not so active, but the potential for the renewal of trade relations remained. The situation changed in the 2000s. It is since that time that there has been a steady increase in trade turnover. Russia became a major supplier of armaments, nuclear technology and energy carriers to India. In turn, Indian companies export textiles, agricultural products, pharmaceuticals and software to our country.

2025 and beyond

Ambitious plans are set for 2025 to increase trade turnover between the countries. Energy projects are being developed, including the construction of nuclear power plants. The space industry, digital technologies and pharmacy are promising areas of cooperation. The countries are striving to diversify trade flows and reduce dependence on the dollar in mutual settlements. Projects to create new transport corridors that will optimize logistics and shorten delivery times are being actively discussed.

The growing role of BRICS, comprising both Russia and India, helps strengthen the economic ties of these countries. The organization provides a platform for multilateral dialogue and cooperation in various areas, including trade and investment.

Areas of current cooperation

Today, economic cooperation between Russia and India covers the widest range of areas. Among the most dynamically developing segments the following ones stand out:

·        Energy – oil and gas supplies, construction of nuclear power plants.

·        Defence industry – trade in armaments and military equipment, joint developments.

·        Space industry – cooperation in satellite navigation and spacecraft launching.

·        Information technology – software development and experience exchange in digitalization.

·        Pharmacy – production and supply of pharmaceuticals.

·        Agriculture – export of grain, tea, coffee and other food products.

Over the centuries, the countries have maintained commercial ties, adapting to changing geopolitical and economic conditions. Today, Russian-Indian relations are characterized by a high level of trust, with the countries mutually seeking to expand cooperation in various areas. Diversification of trade flows, development of new transport corridors and joint projects in high-tech sectors of the economy create a solid foundation for further strengthening of trade and economic ties between India and Russia.