NEW DELHI: A large delegation of Indian exporters will start a four-day visit to Moscow on Tuesday, a senior trade body official said, part of New Delhi’s push to diversify export markets amid the impact of U.S. President Donald Trump’s sharp tariff increases.
The visit comes ahead of an expected trip to India next month by Russian President Vladimir Putin.
The delegation will comprise more than 20 exporters from the engineering sector - a sector which accounts for nearly a fifth of all Indian merchandise exports - and the visit is part of a broader strategy to tap new markets, industry officials said.
Trump has doubled tariffs on Indian imports into the U.S. to 50% as punishment for India’s purchases of Russian oil, driving bilateral relations to their lowest point in decades, though the two countries are now trying to reach a trade deal.
US says India halves Russian oil imports, sources say no cuts seen
“Russia has been an important business partner for India, and the engineering and tools sector presents significant potential for collaboration,” said S.C. Ralhan, president of the Federation of Indian Export Organisations (FIEO), which is leading the delegation.
“Our engineering exports to Russia are growing rapidly and are expected to reach $1.75 billion this year,” he said, adding that the visit aimed to deepen commercial ties and promote Indian manufacturing in the Russian market.
Exports of engineering goods to the U.S., India’s largest market, declined 9.4% year-on-year to $1.40 billion in September, industry estimates showed, while total exports to the U.S. fell to $5.4 billion from $6.9 billion in August.
India’s exports to Russia rose 14.6% year-on-year to $4.9 billion in the fiscal year 2024/25 ending in March, while imports, mainly of crude oil and other energy products, climbed 4.3% to $63.8 billion, Commerce Ministry data showed.
Indian exporters have benefited from supply gaps in Russia after Western firms exited the market following the Ukraine invasion. However, imports have recently slowed as refiners paused Russian oil purchases following the imposition of U.S. sanctions on two major Russian crude oil exporters.
At the MITEX Tools Expo in Moscow from November 11-14, Indian firms will showcase engineering goods, highlighting the country’s manufacturing strength, FIEO said, while the Indian Embassy and the Commerce Ministry will facilitate meetings with Russian buyers to promote trade and joint ventures.
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