The withdrawal of several Western companies from the Russian market has created gaps across critical sectors, paving the way for Indian MSMEs and exporters to expand their footprint.
Dmitry Zavgorodniy, Chief Executive Officer of Russian exhibition leader ITE Group, said Indian businesses are increasingly competitive and well-positioned to fill the demand, reported news agency ANI.
ITE Group, a global exhibitions major, has been holding roadshows in India to help small and mid-sized players explore opportunities in Russia and the Commonwealth of Independent States (CIS). “There are some Western companies who have left, and we know India’s economic potential is growing, not every year, every day. So, India becomes more and more competitive, and India wants to diversify its export network. So, the Russian CIS countries are here. There is a clear demand from Russia for Indian products, Indian food, technology, and equipment. Now our task is to explain, to give the businesses a chance to understand each other,” Zavgorodniy said.
He stressed the need for stronger engagement between companies from both countries. “We should do much more communication. We explain to Russian and Indian businesses that we should talk more, communicate more, and visit each other more. And we invite Indian businesses to visit our exhibition, where they will find a lot of customers who are looking for new products. They are looking for a new experience. They are looking for a cost-effective, competitive proposal. And being here in India, I understand India can offer very competitive cost and very good and or excellent quality,” he added.
Zavgorodniy acknowledged the trade imbalance, with Russia exporting more to India while Indian exports remain relatively lower, largely due to limited awareness and communication gaps. Key sectors for potential Indian participation include food and agriculture, pharmaceuticals, engineering goods, textiles, and industrial machinery. Russian buyers, he said, are keen to source cost-effective, high-quality alternatives to European and American products.
He highlighted how business ties have expanded in recent years. From around 2,000 Russian firms engaged with India in 2021, the number has surged to 10,000 by 2025, with expectations that up to 30,000 Indian firms could be exporting to Russia in the near future.
Zavgorodniy also pointed to the growing role of BRICS and the shift toward South-South trade, with India emerging as a key player alongside China, Brazil, and South Africa.
According to the Indian embassy in Moscow, bilateral trade between India and Russia reached a record $68.7 billion in FY 2024-25, nearly five times the $10.1 billion recorded before the pandemic. This included $4.88 billion of Indian exports and $63.84 billion of imports from Russia.
India’s exports to Russia cover a wide range of goods including agri-products such as fish, shrimp, rice, tobacco, tea, coffee, and grapes, along with pharmaceuticals, iron and steel, chemical products, ceramics, machinery, aeroplane components, glassware, textiles, leather goods, rubber articles, electrical machinery, and surgical tools.
Imports from Russia are dominated by oil and petroleum products, fertilisers, mineral fuels, bituminous substances, mineral waxes, machinery, precious metals and stones, wood, pulp and paper products, vegetable oils and other industrial commodities.
Both governments have set a bilateral trade target of $100 billion by 2030, a goal industry leaders and officials say is achievable with greater awareness, better communication, and wider participation of Indian companies across sectors.