India and Russia share one of the most enduring strategic partnerships in contemporary international relations. Bilateral relations have evolved through distinct historical phases, from the Soviet era characterized by state-led industrial cooperation and rupee–ruble trade mechanisms to the post-Soviet period marked by market-oriented economic engagement and diversified sectoral collaboration. This article critically examines the evolution, structure, and prospects of India–Russia economic cooperation with particular emphasis on trade dynamics, industrial collaboration, energy security, technology partnerships, and emerging areas such as artificial intelligence and rare earth minerals. The paper highlights how Soviet technical assistance significantly contributed to India’s industrialization during the early decades after independence through major projects in steel, petroleum refining, heavy engineering, and energy production. However, the collapse of the Soviet Union in 1991 disrupted established trade mechanisms, resulting in a sharp contraction in bilateral trade and a gradual transition toward market-based economic relations. In the contemporary period, energy trade—particularly crude oil imports—has become the dominant component of bilateral commerce, creating a significant trade imbalance. Despite strong political relations and a “Special and Privileged Strategic Partnership,” economic cooperation remains below potential. The article identifies key bottlenecks including limited diversification of exports, logistical constraints, financial settlement issues, visa restrictions, and insufficient private sector participation. It further explores emerging opportunities in sectors such as nuclear energy, pharmaceuticals, digital technology, rare earth minerals, railways, artificial intelligence, and defence industrial cooperation. The paper concludes that enhanced institutional frameworks, improved financial connectivity, and deeper integration through mechanisms such as a Free Trade Agreement between India and the Eurasian Economic Union could significantly strengthen the economic dimension of this strategic partnership.
Sumant Swain (Sat,) studied this question.