In recent months, India exports to Russia have significantly increased, particularly in sensitive technologies. This rise has attracted the attention of US and European officials due to the impact it has on Russia’s ability to access restricted goods amidst ongoing sanctions. The growth in exports is largely fueled by Russia’s substantial reserves of Indian rupees, accumulated through oil sales to India.
The Role of Rupee Reserves in India Exports to Russia
One of the key factors driving the rise in India exports to Russia is Moscow’s reserves of Indian rupees. As Russia continues to sell oil to India, it has amassed a significant amount of rupees, which are now being used to purchase restricted goods. These exports include microchips, circuits, and machine tools—technologies crucial for Russia’s defense and other industries.
Doubling of India Exports to Russia in 2024
In April and May 2024, India exports to Russia nearly doubled to $60 million per month, compared to the same period in 2023. By July 2024, this number surged to $95 million, illustrating a dramatic increase. Almost 20% of the sensitive technologies used by Russia’s defense sector are reportedly being sourced from India, highlighting India’s growing role in supplying critical goods to Russia.
Dual-Use Technologies in India Exports to Russia
The focus of India exports to Russia has been on dual-use technologies, which are items that can be used for both civilian and military purposes. According to analysts, Russia has covertly obtained sensitive electronics from India, further boosting its military capabilities. These technologies, although under international sanctions, have found their way into Russian hands due to the large reserves of Indian rupees.
Implications for International Relations: India Exports to Russia and Global Dynamics
The increase in India exports to Russia has raised concerns among global powers. Prime Minister Narendra Modi’s visit to Ukraine in August 2024, where he reiterated his commitment to international law, was seen as a delicate balancing act amidst rising tensions in Russo-Indian relations. Additionally, reports of Indian artillery shells being transferred to Ukraine through European intermediaries have further complicated the geopolitical landscape.
Conclusion
The rise in India exports to Russia reflects the growing economic ties between the two nations, largely driven by oil trade and Russia’s need for sensitive technologies. However, this has also sparked international scrutiny, as global powers keep a close eye on the evolving situation and its broader implications for international law and security.
