India to Significantly Diversify Exports to Russia by FY 2026-27

NEW DELHI, August 3. /TASS/

India will expand its export basket to Russia by the end of the current fiscal year, and the range of Indian goods for Russia will become more diverse, Subhash Chander Ralhan, President of the Federation of Indian Export Organizations (FIEO, established by the Ministry of Commerce and Industry of India), told TASS.

"India’s export basket to Russia is expected to become significantly more diversified by the end of FY 2026-27. While engineering goods, machinery, electronics, pharmaceuticals and chemicals will remain the mainstay of exports, we are witnessing strong demand across a much broader range of value-added products," he said.

"Growing opportunities are emerging in processed and ready-to-eat foods, beverages, tea, coffee, spices, rice, fresh fruits and vegetables, marine products, nutraceuticals, cosmetics and personal care products, home furnishings, garments, technical textiles, footwear, furniture, packaging materials, consumer goods, electrical equipment, industrial machinery and renewable energy components," FIEO President specified.

He noted that Russia's efforts to diversify its import sources are opening up new opportunities for Indian manufacturers, particularly small and medium-sized businesses interested in supplying consumer goods, agricultural products, and engineering solutions.

"At the same time, services such as information technology, healthcare, education and engineering consultancy are also gaining traction, reflecting the broadening scope of India-Russia economic cooperation," Ralhan said.

The FIEO President also highlighted the important role of the special rupee vostro account mechanism, which allows for settlements in national currencies.

"Further streamlining of the mechanism and wider participation of banks will make transactions smoother, reduce costs and provide greater confidence to exporters, particularly MSMEs, to expand their presence in the Russian market," Ralhan stressed.