For a long time, the economic story between India and Russia was almost entirely about oil, gas, and weapons. But that’s changing fast. Moscow is now aggressively pushing for a new wave of “non-energy” joint ventures, looking to plant its flag in India’s manufacturing and tech sectors. According to recent updates from Russia’s trade representative, Andrey Sobolev, the focus has shifted toward localizing production in everything from shipbuilding and metallurgy to IT and green energy. It is a strategic pivot meant to ensure that if the oil market ever cools down, the partnership doesn’t freeze with it.
The $100 Billion Target
The timing here isn’t random. Fresh off the heels of the December summit, Moscow and New Delhi locked in a massive goal, hitting $100 billion in trade by the time 2030 rolls around. While Russia currently dominates that number because of its massive crude exports, India is looking to balance the scales. The goal for Indian exporters is to hit $10 billion in goods and services by the end of this year alone. It’s a massive jump, and leaders in the Federation of Indian Export Organizations believe the path forward lies in sectors like pharmaceuticals, electronics, and heavy machinery, areas where Russia is desperate to replace Western suppliers.
One of the most ambitious parts of this new roadmap involves the Northern Sea Route (NSR). This 5,600-kilometer maritime corridor along Russia’s Arctic coast is being pitched as a game-changer for logistics. By cutting shipping times between Europe and East Asia by up to 40%, the NSR could bypass the usual bottlenecks of the Suez Canal.
New Delhi doesn’t just want to sail ships through the Arctic; they want to build the ships that sail it. The plan is to get Indian yards working on “ice-class” cargo vessels and polar research boats. It makes sense for both sides, Russia gets a shipbuilding partner that ignores Western sanctions, and India gets a crash course in high-tech polar engineering.
A new era of local manufacturing
We aren’t just talking about moving shipping containers anymore. Russian companies are starting to see India as a manufacturing hub for the rest of the world. By setting up factories here, they can sidestep sanctions and sell directly to South Asia. Whether it is fintech or green energy, the partnership is shifting from polite diplomatic talks to the actual grind of industrial co-production that keeps real economies moving.