1 May 2024

Why Is Russia Indispensable To India? – Analysis

Subrata Majumder

Russia, which descended to a negligible trade and economic partner of India with the breakup of the Soviet Union and the great Indian economic reforms in 1991, has emerged as indispensable for the South Asian country. Besides defense, it is an important trade partner of India. Additionally, with the onset of global sanction on Russia, it has become a major shield to India’s oil economy.

Paradoxically, while global sanctions on Russia dashed the European economy, it has become boon to India. Russia became the biggest crude oil supplier to India in 2022-23 and the trigger for India’s exports of petroleum refinery products. India imports over 90 percent of crude oil demand.

In 2022-23, Russia was the 5th biggest trading partner of India, compared to 25th in 2021-22. This has invoked a new era of India-Russia economic relations.

The greater part of the revival in India–Russia economic relations was due to oil supply. Russia played a key role in protecting India from oil turbulence due to global the oil sanction on Russia. India and China were non-parties to the sanctions.

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