New Delhi [India], September 14 (ANI): The withdrawal of several Western companies from the Russian market has created significant gaps across key sectors, opening up new opportunities for Indian MSMEs and other firms, according to Dmitry Zavgorodniy, Chief Executive Officer (CEO) of ITE Group, a Russian company.
Global exhibition leader ITE Group has been organizing roadshows in India to help small and mid-sized businesses enter markets across Russia and the Commonwealth of Independent States (CIS) or Eurasia.
“There are some Western companies who have left, and we know India’s economic potential is growing—not every year, but every day. So, India becomes more and more competitive, and India wants to diversify its export network. 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 and give the businesses a chance to understand each other,” the ITE Group CEO said.
On the importance of greater interaction between companies from both countries, he added:
“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 many customers looking for new products, new experiences, and cost-effective, competitive proposals. Being here in India, I understand India can offer very competitive costs along with very good, even excellent, quality.”
Zavgorodniy acknowledged a significant trade imbalance, noting that while Russia exports far more to India, Indian exports remain relatively lower—largely due to limited awareness and communication gaps.
Among the sectors ripe for Indian participation are food and agriculture, pharmaceuticals, engineering goods, textiles, and industrial machinery. Russian buyers, he emphasized, are actively seeking cost-effective, high-quality alternatives to products previously sourced from Europe and the US.
While trade between India and Russia is expanding, the untapped potential remains vast. In 2021, only around 2,000 Russian companies were engaged in trade with India; by 2025, that number had grown to 10,000. Looking ahead, Zavgorodniy said the expectation is that up to 30,000 Indian companies could soon be exporting to Russia.
He also highlighted the evolving role of BRICS and the shift toward South-South trade, with India playing a pivotal role alongside China, Brazil, and South Africa.
According to the Indian Embassy in Moscow, bilateral trade between India and Russia reached a record high of USD 68.7 billion in FY 2024–25, nearly five times higher than the pre-pandemic level of USD 10.1 billion.
This comprises India’s exports worth USD 4.88 billion and imports from Russia amounting to USD 63.84 billion.
Key Indian exports include agricultural products (fish, shrimp, rice, tobacco, tea, coffee, grapes), chemical products, pharmaceuticals, iron and steel, ceramic goods, aircraft components, machinery, glass and glassware, clothing and knitwear, leather goods, rubber articles, electrical machinery, and surgical tools.
Major imports from Russia are dominated by oil and petroleum products, fertilizers, bituminous substances, mineral fuels, mineral waxes, machinery, equipment, precious metals and stones, wood, pulp and paper products, metals, and vegetable oils.
Both sides expect to reach the bilateral trade target of USD 100 billion by 2030. (ANI)
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