Russia to Offset Losses from U.S. Tariffs: $100 Billion Trade Target in Sight

India, whose second-largest trading partner and biggest export market is the United States, faces a major challenge as Washington has imposed a 50% tariff on Indian goods. This includes an additional 25% tariff related to India’s purchase of oil from Russia, which has impacted India’s exports to the U.S. significantly.

To diversify its markets, India is now strengthening trade and investment ties with Russia. A major step in this direction will be the India-Russia Business Forum scheduled in New Delhi on 4–5 December, coinciding with Russian President Vladimir Putin’s visit to India. Both countries have set an ambitious goal to increase bilateral trade to $100 billion by 2030.

The forum aims to enhance Indian engineering exports to Russia, boost imports of Indian food products—particularly seafood—and explore cooperation in digital services. Discussions will also focus on increasing Russian purchases of Indian pharmaceuticals.

Officials stated that the forum will address several key areas: expanding Indian companies’ presence in Russia, strengthening industrial cooperation, implementing joint projects, promoting high-tech collaboration, and facilitating skilled Indian manpower in Russia. Strengthening India-Russia collaboration in pharmaceuticals and healthcare is another top priority, signaling a joint commitment to building an innovative and robust healthcare ecosystem.

Special emphasis will be placed on maximizing Indian medicines and medical devices in the Russian market. The forum will also explore local production of pharmaceuticals in Russia, establishing joint factories for modern drugs and medical equipment, and policies and investments that foster innovation, increase production, and expand cooperation in healthcare services.

There is significant potential for expanding exports of Indian food products to Russia. Indian goods already in the Russian market include vegetable curries, ready-to-eat meals, dals, snacks, and sweets. In 2024–25, India started supplying butter and milk fats to Russia, along with increased exports of grapes. Opportunities also exist for exporting nutritious grains, traditional sweets, and seafood, including ongoing discussions to export Indian prawns. Tariffs imposed by the U.S. have made it increasingly challenging for Indian exporters, making Russia an attractive alternative market.