India’s imports from Russia experienced a noteworthy surge, reaching USD 20.45 billion in the initial four months of the current fiscal year (April-July). This substantial increase was primarily attributed to the heightened inflow of crude oil and fertilizers from Russia, as indicated by data from the commerce ministry.
This surge has propelled Russia into the position of India’s second-largest import partner for the corresponding fiscal period, marking a significant shift from the imports totaling USD 10.42 billion during April-July 2022.
Prior to the commencement of the Russia-Ukraine conflict, Russia held a market share of less than 1 percent in India’s import portfolio. However, this landscape transformed remarkably, with Russia’s share of India’s oil imports escalating to exceed 40 percent.
India, recognized as the world’s third-largest importer of crude oil, trailing only China and the United States, embarked on procuring Russian oil at a discounted rate. This initiative arose as Western nations abstained from engaging with Russian oil as a punitive measure in response to Moscow’s involvement in the Ukrainian invasion.
Analyzing the commerce ministry’s data reveals a dip in imports from China, which amounted to USD 32.7 billion during April-July, compared to USD 34.55 billion during the same period in the previous year.
Likewise, imports from the United States displayed a contraction, declining to USD 14.23 billion in the reviewed timeframe from the USD 17.16 billion recorded in April-July 2022. Meanwhile, imports from the United Arab Emirates (UAE) also experienced a shrinkage, amounting to USD 13.39 billion in April-July 2023, in contrast to the USD 18.45 billion witnessed during the corresponding period the previous year.