Big Opportunities for Import-Export Businesses: India-Russia Trade Boost

India and Russia are strengthening their business ties after Prime Minister Narendra Modi’s visit to Russia. He met with President Vladimir Putin to create a roadmap to grow trade between the two countries to $100 billion (₹8.34 lakh crore) by 2030. This is a huge chance for anyone in the import-export business to expand and grow.

Key Goals for Improving India-Russia Trade:

1. Better Import-Export Systems: Simplifying how goods are traded.

2. Simpler Trade Processes: Making procedures quicker and easier.
3. Using Indian Rupees (INR): More transactions in INR, less reliance on the US dollar.
4. Duty Benefits: Lower taxes on imports and exports.
5. Improved Logistics: Faster, cheaper transport routes.
Focus on “Make in India” Products: Promoting Indian-made goods.

Why Is India Pushing for More Trade with Russia?

In 2023, India-Russia trade hit a record $65 billion.
There was a 66% growth in trade last year, with another 20% increase in early 2024.
But India had a $57 billion trade deficit (importing more than exporting) with Russia in 2023-24.
To fix this, India wants to increase exports to Russia.

Major Changes and New Plans:

* Removing Trade Barriers: Making it easier for businesses to trade freely.
* Using Local Currencies: More deals in Indian Rupees to avoid currency risks.
* Simplified Customs: Faster customs procedures to move goods quickly.
* Better Transport Routes: New land and sea routes for smoother shipping.
* Investing in Energy & Infrastructure: More investments in key sectors to support trade.
* New Diplomatic Ties: Opening new consulates in Kazan and Yekaterinburg.
* Signing Agreements (MoUs): 22 agreements in areas like:
- Climate Change
- Legal Arbitration
- Pharmaceutical Certification
* Business Meetings: More B2B meetings, trade events, and business trips to boost relationships.

Big Opportunities for Indian Exporters:

Trading in INR – A Game Changer:
Doing business in INR reduces dependency on the US dollar, lowers costs, and protects from currency fluctuations.
Takeaway: Start offering prices in INR using Incoterms like CIF or FOB.
Duty Benefits – Lower Costs:
Both countries will reduce or remove duties on various goods, making Indian products more competitive in Russia.
Takeaway: Stay updated on duty exemptions announced by the government.
Better Logistics – Faster, Cheaper Shipping:
Improved transportation and infrastructure will reduce shipping time and costs.
Takeaway: Check different trade routes to find the most cost-effective option for your location in India.

10 Steps to Maximize Your Import-Export Success:

1. Market Research: Learn what Russian consumers want.
2. Build Connections: Use the Federation’s network to find Russian importers.
3. Use Duty Benefits: Take advantage of reduced taxes to price your products better.
4. Trade in INR: Minimize currency risks by dealing in Indian Rupees.
5. Maintain Product Quality: Meet Russian quality standards.
6. Attractive Packaging: Ensure packaging is appealing and protective.
7. Efficient Logistics: Use better transport links for timely, cost-effective delivery.
8. Follow Regulations: Stay updated on Russian import laws and comply.
9. Promote Your Brand: Use marketing to build your brand in Russia.
10. Get Expert Advice: Work with trade experts and use Federation resources.

Ready to Expand Your Business?

The Import-Export Federation is here to help you tap into this growing market. We have strong ties with a major Russian supermarket chain, making it easier for new exporters to succeed. Join our Export Business Launcher Masterclass to learn how to start exporting to Russia. We also offer an in-depth online export course and full support for your first shipment!