Russia India top oil supplier
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Russia India top oil supplier
Subject: Economy
Context:
Russia is reported to have become India’s largest supplier of crude oil since October 2022 as refiners stepped up the purchase of discounted seaborne oil.
Concept
- Traditionally, India has met the bulk of its crude oil needs from Iraq, Saudi Arabia and the United Arab Emirates.
- Bilateral trade with Russia is now larger than trade with countries such as Indonesia, Iraq, Singapore, South Korea and Australia.
- Intensifying the trade and economic relations has been identified as a priority area and India-Russia targets of increasing bilateral investment to $50 billion and bilateral trade to $30 billion by 2025.
- As per figures of the Department of Commerce, bilateral trade during FY 2021-22 amounted to $13.2 billion.
- Indian exports amounted to $3.26 billion, while imports from Russia amounted to $9.86 billion.
- In April-August 2022, the bilateral trade soared to an all-time high of $18.23 billion with India’s imports of $17.23 billion, while India’s exports to Russia amounted to $992.73 million.
- India’s exports to that country have been small.
- Major items of export from India include electrical machinery, pharmaceuticals, machinery and mechanical appliances, organic chemicals, iron & steel.
- Major items of import from Russia include oil and petroleum products, fertilizers, mineral resources, precious stones and metals, vegetable oils, etc.
- Bilateral trade in services has remained stable during the last 5 years with trade balance in Russia’s favor. It amounted to $1.021 billion for the year 2021.
- Bilateral investments between the two countries remain strong and surpassed the previous target of $30 billion in 2018.
- The major bilateral investments by Russia in India are in the oil and gas, petrochemicals, banking, railways and steel sectors, whileIndian investments in Russia are mainly in oil and gas and pharmaceuticals sectors.
- Russia was the seventh largest trade partner during April-August 2022.
- The rise in oil imports from Russia also made that country India’s fifth largest trade partner in September.
