India and Russia Search for New Economic Pathways Beyond Oil and Arms

As India and Russia Rethink Trade, Payments, Technology, and Agriculture; Can This Broader Partnership Reduce Risks and Unlock Sustainable Economic Growth by 2030?

India and Russia are reworking their long-standing strategic partnership to reduce reliance on defence and energy trade. During their early December 2025 summit, Prime Minister Narendra Modi and President Vladimir Putin agreed that future cooperation must be broader, more balanced, and economically sustainable. The outcome signals a deliberate shift toward trade diversification, technology collaboration, and long-term economic integration.

A New Trade Vision Through 2030

A major highlight of the summit was the adoption of an Economic Cooperation Programme extending to 2030. Both countries set an ambitious target of lifting annual bilateral trade to $100 billion, nearly three times current levels. Leaders agreed that growth must come from non-traditional sectors, with India increasing exports of manufactured goods, pharmaceuticals, and services, while Russia expands supplies beyond hydrocarbons.

To support this goal, India and Russia plan to accelerate a free-trade agreement between India and the Eurasian Economic Union. They also agreed to finalise an investment protection framework to improve investor confidence and encourage long-term industrial collaboration.

Payments, Currency, and Financial Infrastructure

Financial cooperation emerged as a key enabler of future trade. Both sides agreed to expand trade settlement in rupees and rubles, reducing exposure to global currency volatility. 

Integration of banking systems and work on digital payment platforms, including central bank digital currencies, are expected to simplify transactions and protect bilateral trade from external disruptions. These steps are aimed at ensuring smoother trade execution and providing businesses with more predictable financial mechanisms.

Agriculture and Fertilisers Take Centre Stage

Agriculture is becoming a strategic pillar of India–Russia economic ties. The two countries endorsed plans for a joint fertiliser manufacturing facility in Russia to meet India’s long-term agricultural needs. Discussions also focused on assured supplies of urea and phosphates, critical for India’s food security.

Beyond fertilisers, both sides agreed to expand trade in grains, fruits, seeds, meat, dairy, and seafood. Joint research initiatives in seeds, aquaculture, fisheries, and farm technology are expected to deepen cooperation and open new commercial channels.

Also Read: Can Russia Weather the Storm of US Tariffs on Indian Oil Imports? 

Strengthening Connectivity and Trade Corridors

Logistics and transport links were another major focus area. Leaders committed to fast-tracking the International North–South Transport Corridor and scaling up the Chennai–Vladivostok Eastern Maritime Corridor. These routes aim to cut transit time, lower logistics costs, and connect Indian businesses more directly with Russian and Eurasian markets.

India and Russia also expanded cooperation on Arctic shipping and the Northern Sea Route, along with training programs for polar navigation. A separate cooperation framework for Russia’s Far East will promote investment in ports, pharmaceuticals, mining, agriculture, and infrastructure.

Technology, Manufacturing, and Innovation

Technology collaboration is moving beyond defence into civilian and commercial innovation. A new roadmap for science, technology, and innovation was approved to link government agencies, private companies, startups, and academic institutions.

Joint work is planned in artificial intelligence, cybersecurity, digital infrastructure, advanced manufacturing, and critical minerals. Pharmaceutical manufacturing partnerships and industrial equipment projects reflect growing interest in production-based collaboration.

Education, Climate, and the Energy Transition

People-to-people ties are also expanding. Russia has opened a dedicated education agency in New Delhi to support Indian students and boost academic exchanges. Both sides aim to increase student mobility, vocational training, and recognition of qualifications.

Climate and clean energy cooperation has gained prominence as well. India and Russia agreed to strengthen dialogue on low-carbon technologies, climate finance, and nuclear energy. While russian oil remains part of the relationship, the partnership is now actively aligned with energy transition goals.

Also Read: Trump Hails PM Modi, Says India Has ‘Largely Stopped’ Buying Russian Oil 

A Partnership Moving Forward  

The recent summit in December 2025 has brought about a realisation of what exactly the relationship between India and Russia should be, and that is not just about oil and weapons. The expansion of partnerships in agriculture, logistics, technology, education, and fighting global warming is helping to set the right groundwork for a diversified relationship between the two trading entities.