New Delhi: With the United States and European countries imposing an economic embargo on Russia, Russian industrial companies are facing a severe crisis without the raw materials and spare parts required for their production.
Thus, Russia has requested India to export more than 500 items, including key components required for car and aircraft production.
Indian External Affairs Minister Jaishankar visited Russia on November 7. Before that, Russia is said to have sent this request to India.
The Russia-Ukraine war began last February. The United States and European countries imposed economic sanctions on Russia in response to Russia’s attack on Ukraine. In Russia, there is a shortage of critical spare parts, and industrial companies are under severe pressure.
Meanwhile, Russia has requested India to send 500 items including car parts including engine, oil pump, seat belt, aircraft wheels, raw materials for paper production and machine parts for textile production.
Economists say this is a great opportunity for India to increase trade with Russia.
Generally, India imports more from Russia. Exports very little. India has recently increased its crude oil imports from Russia. Due to this, India’s trade deficit with Russia has increased. In this case, it is expected that India’s trade deficit will decrease as Russia is now asking India to export key components.
Between February and November last year, India imported Rs 49,000 crore ($6 billion) from Russia. This year it has risen fivefold to Rs 2.3 lakh crore ($29 billion). Meanwhile, exports declined to Rs 15,580 crore ($1.9 billion) from Rs 19,680 crore ($2.4 billion).
In this context, as Russia has asked India to export key components, India’s exports to Russia are expected to rise to Rs 82 thousand crore ($10 billion) in the coming months.