India and Russia have set an ambitious goal to boost annual bilateral trade to $100 billion within the next five years, marking a 50% increase as both nations face rising tensions with the United States.
Indian External Affairs Minister Subrahmanyam Jaishankar announced the target during his visit to Moscow, speaking at the India-Russia Business Forum. He highlighted the importance of removing trade bottlenecks and reducing non-tariff barriers to achieve the milestone.
Currently, bilateral trade stands at $65–68 billion annually. Russia is India’s fourth-largest trading partner, while India is Russia’s second-largest globally.
The announcement comes as both countries look to diversify economic ties amid strained relations with Washington. President Donald Trump recently imposed 25% tariffs on Indian goods and threatened to raise them to 50% by August 27.
Trump has also criticized India for importing Russian oil, claiming it indirectly funds the war in Ukraine. India has defended its stance, saying it has the right to purchase energy from the cheapest available source and called the tariffs unreasonable.
Jaishankar’s three-day Moscow visit reflects deepening ties between the two BRICS founding members. The minister underscored the need for reliable partners in uncertain global conditions.
India has been gradually distancing itself from the U.S. due to tariff pressures. Prime Minister Narendra Modi recently referred to Vladimir Putin as a friend and has also worked to strengthen relations with China.
The $100 billion trade target was initially set during Modi’s July 2024 visit to Russia and reaffirmed in subsequent high-level meetings.
Russia remains a vital energy supplier to India, providing discounted crude oil, which helps stabilize domestic fuel prices. Crude oil and petroleum products make up about 88% of India’s imports from Russia.
Both nations are also developing alternative payment systems using their national currencies instead of U.S. dollars, aiming to reduce dependence on Western financial networks and ensure smoother trade flows.