India-Russia Trade in the Post-2025 Strategic Landscape

The India-Russia trade relationship is entering a new phase driven by geopolitics, economic diversification and logistics innovation. The December 2025 visit of Russian President Vladimir Putin to India marked a significant diplomatic and economic milestone for bilateral cooperation, with discussions extending beyond traditional energy and defence ties into expanded trade, settlement mechanisms, and connectivity projects. 
At the 23rd India-Russia Annual Summit in New Delhi, both countries underscored the importance of forging deeper economic linkages, laying the foundation for strategies that extend to 2030 and beyond.

1. Strategic Freight Routes and Logistics Connectivity

Vladivostok–Chennai and Other Corridors

One of the key elements of the new India Russia trade strategy post 2025 is the expansion of freight routes designed to enhance trade connectivity and reduce transit costs.
India and Russia have actively pursued strengthening maritime and land corridors to make trade faster and more cost-efficient. The Vladivostok–Chennai corridor, also known as the Eastern Maritime Corridor, is a cornerstone of this effort, promising a dramatic improvement in connectivity between India’s east coast and Russia’s Far Eastern ports. Efforts to develop and boost cargo traffic along this route are part of broader plans to deepen logistics ties and support economic integration.
This corridor is expected to significantly cut shipping times for goods, supporting both bulk imports like energy and commodities and exports of Indian manufactured goods, thereby strengthening logistics competitiveness for exporters and freight stakeholders across sectors.

International North-South Transport Corridor (INSTC) Acceleration

The INSTC corridor India Russia remains another central part of bilateral trade strategy. During 2025, both sides reiterated the importance of this corridor to improve east-west freight movement and reduce dependency on traditional long westward routes via Europe. It has logistical potential to link Russia and India through Iran’s transport networks, reducing freight costs and transit time.
Recent reports suggest that cargo movement via INSTC has become measurably faster — with some transit times reduced by about five days compared with older routes — as shipments travel rail and sea segments through Iran into Indian ports such as Mundra. 

2. Rupee-Rouble Settlement: Financial Innovation in Bilateral Trade

An important part of post-2025 commerce is financial settlement mechanisms. India and Russia have been steadily shifting a large portion of trade to national currencies — the rupee and the rouble — bypassing reliance on the U.S. dollar. Such mechanisms aim to simplify trade, reduce exchange costs and mitigate the impact of Western financial sanctions affecting Russia. 
Reports indicate that a substantial share of bilateral trade is already being conducted in rupees and roubles, with enhanced efforts being made to integrate payment systems, including plans to connect India’s UPI/RuPay networks with Russia’s SPFS/Mir systems to ensure seamless settlements that are resilient to external financial pressures.
However, exporters have flagged challenges with payment delays under existing rupee–rouble mechanisms, and stakeholders are calling for a more robust direct exchange platform with a fixed monthly exchange rate to lubricate smoother trade settlements. 

3. Trade Expansion Initiatives and New Export Opportunities

In late 2025, the Indian government identified nearly 300 Indian products across sectors such as engineering goods, pharmaceuticals, agriculture, and chemicals ripe for expansion into the Russian market. This targeted push aims to diversify India’s export portfolio beyond energy import-led trade and boost two-way commercial flows. 
This initiative aligns with both nations’ ambitions to reach a bilateral trade target of $100 billion by 2030 — a goal reiterated during high-level dialogues at the summit. 

4. Geopolitical Enhancements to Trade Strategy

Putin’s December 2025 state visit to India was not limited to energy and defence discussions; it also sent strong signals about evolving cooperation in economic and connectivity spheres. Analysts noted that talks during the summit were focused on broader strategic partnerships that include trade resilience, supply chain opportunities, and alternative route planning, reflecting a “modern, diversified and resilient relationship.”
At the same time, external observers have pointed out that despite formal commitments, there remain constraints and shifts in strategic dynamics. Some analysts highlight that while the relationship retains symbolic strength, significant structural balancing — especially in diversifying beyond energy imports — is still in progress.

5. Practical Implications for Exporters and Importers

A. Logistics Strategy

Exporters and importers should explore freight options beyond traditional routes, especially new corridors like Vladivostok–Chennai and INSTC. These alternatives are designed to ease transit time, cut costs and reduce dependency on longer established routes that face geopolitical and bottleneck risks.

B. Currency Settlement Preparedness

Businesses should familiarize themselves with rupee–rouble settlement practices — including working directly with banks and financial partners capable of handling national currency trade. While this approach offers stability against sanctions and de-dollarisation pressures, it requires careful exchange risk monitoring and may involve upfront structural adjustments in trade contracts.

C. Sectoral Diversification

With India identifying 300 high-potential export product categories for the Russian market, Indian firms in pharmaceuticals, engineering goods and agricultural sectors have clear avenues to pursue. Strategic partnerships and market entry plans tailored to Russian demand can help diversify exports and mitigate trade imbalances.

Conclusion: A Multi-Dimensional Trade Strategy for 2026 and Beyond

The New India-Russia trade strategy post 2025 envisions a multi-dimensional framework combining freight infrastructure, alternative logistics corridors, financial settlement innovation and sectoral expansion. Bolstered by ongoing political dialogue and strategic cooperation frameworks highlighted during Putin’s 2025 India visit, this roadmap offers exporters and importers a foundation to navigate today’s complex global trade environment. For Indian businesses, embracing these changes — from freight routing strategies to rupee–rouble payment systems — could unlock new growth pathways amid evolving global supply chain dynamics.