World
Reviewing the Dynamics of Indian–Russian Business Partnership
By Kestér Kenn Klomegâh
The Executive President of the Indian Business Alliance (IBA), Sammy Manoj Kotwani, discusses the landmark moment in deepening Russian-Indian collaboration. Kotwani explains the groundbreaking insights into President Vladimir Putin’s working visit to India, the emerging opportunities and pathways for future cooperation, especially for the two-sided economic collaboration. Follow Sammy Manoj Kotwani’s discussions here:
Interpretation of the latest development in Russian-Indian relations
From my viewpoint in Moscow, this visit has effectively opened a new operational chapter in what has always been described as a “Special and Privileged Strategic Partnership.” It did not just reaffirm political goodwill; it translated that goodwill into a structured economic roadmap through Programme 2030, a clear target to take bilateral trade to around USD 100 billion by 2030, and concrete sectoral priorities: energy, nuclear cooperation, critical minerals, manufacturing, connectivity, fertilizers, and labour mobility.
On the ground, the business community reads this summit as a strong signal that India and Russia are doubling down on strategic autonomy in a multipolar world order. Both sides are trying to de-risk their supply chains and payment systems from over-dependence on any single centre of power. This is visible in the focus on national currencies, alternative payment mechanisms, and efforts to stabilise Rupee–Ruble trade, alongside discussions on a Free Trade Agreement with the Eurasian Economic Union and the reinforcement of corridors like the INSTC and the Chennai–Vladivostok route.
In short, my interpretation is that this summit has moved the relationship from “politically excellent but structurally imbalanced” towards a more diversified, long-term economic framework in which companies are expected to co-produce, co-innovate, and invest, not just trade opportunistically.
Significance of the visit for Indian business in Russia and for the Indian Business Alliance (IBA)
For Indian business operating in the Russian Federation, the visit has three immediate effects: confidence, clarity, and continuity. Confidence, because Indian entrepreneurs now see that despite external pressure, New Delhi and Moscow have explicitly committed to deepening economic engagement—especially in energy, fertilizers, defence co-production, nuclear, and critical minerals—rather than quietly scaling it back.
Clarity, because the summit outcomes spell out where the real opportunities lie:
Energy & Petrochemicals: Long-term crude and LNG supply, but also downstream opportunities in refining, petrochemicals, and logistics, where Indian EPC and service companies can participate.
Pharmaceuticals & Medical Devices: Russia’s import substitution drive makes high-quality Indian generics, formulations, and even localized manufacturing extremely relevant.
IT, Digital & AI: There is growing appetite in Russia for Indian IT services, cybersecurity, and digital solutions that are not dependent on Western tech stacks.
Fertilizers, Agro & Food Processing: New joint ventures in fertilizers and agriculture supply chains were explicitly flagged during and around the summit, which is important for both food security and farm incomes.
Continuity, because the Programme 2030 framework and the expected EAEU FTA give businesses a medium-term policy horizon. Tariff reductions, improved market access and predictable regulation are precisely what Indian SMEs and mid-sized companies need to justify long-term investments in Russia.
For the Indian Business Alliance (IBA), this inevitably means more work and more responsibility. We already see increased incoming requests from Indian firms—from large listed companies to first-time exporters—asking very practical questions: Which Russian region should we enter? How do we navigate compliance under the sanctions environment? Which banks are still handling Rupee–Ruble or third-currency settlements? How can we structure joint ventures to align with Russia’s import substitution goals while protecting IP and governance standards?
IBA’s role, therefore, becomes that of economic diplomacy in action: translating high-level summit language into actual B2B meetings, sectoral delegations, regional partnerships, and deal-making platforms such as the India–Russia Business Dialogue in Moscow. This visit will undoubtedly stimulate and intensify IBA’s work as a bridge between the two ecosystems.
India’s current economic presence in the Russian Federation
If we look beyond the headline trade figures, India’s economic presence in Russia today is significant, but not yet commensurate with its potential. Bilateral trade has grown sharply since 2022, largely on the back of discounted Russian oil and coal, making India one of Russia’s top energy customers. However, the structure is still heavily skewed: Russian exports to India dominate, while Indian exports and investments in Russia remain relatively modest and under-diversified.
On the ground in Moscow and across the regions, we see several strong Indian footholds:
Pharmaceuticals: Indian pharma is well-established, respected for its affordability and quality, and poised to deepen localization in line with Russian import substitution policy.
Tea, Coffee, Spices & Food: Traditional segments with deep historical roots, now expanding into ready-to-eat, wellness, and ethnic food categories.
IT & Services: Still under-represented, but with growing interest as Russian entities look for non-Western software, integration, and outsourcing partners.
Diamonds, Textiles, Apparel, and Light Engineering: Present but fragmented, with enormous room to scale, especially if logistics and payment challenges are addressed.
Where India is still behind is on-the-ground investment and manufacturing presence compared to countries like China. Russian policymakers today are clearly favouring investors who help them achieve technological sovereignty and local value addition. For serious Indian companies willing to commit capital, adapt to Russian standards, and accept the complexities of the current environment, this is a period of unusual opportunity. For purely transactional players looking for quick arbitrage, it is becoming progressively harder.
So, I would characterise India’s economic presence as: strategically important, quickly growing in value, but still under-leveraged in terms of depth, diversification, and localization.
Geopolitical pressure from Washington and future predictions
Pressure from Washington—through sanctions, secondary sanctions risk, financial restrictions, and now even tariff measures linked to India’s energy purchases from Russia—is undoubtedly a real and continuing challenge. It affects everything from shipping insurance and dollar transactions to technology transfers and the risk appetite of global banks. In practical terms, it can complicate even a simple India–Russia trade deal if it touches a sanctioned bank, vessel, or technology.
However, my own assessment, based on 35 years of living and working in Russia, is that this pressure will not fundamentally derail India–Russia friendship, but it will reshape how the relationship functions. India’s foreign policy is anchored in strategic autonomy; it seeks strong ties with the United States and Europe, but not at the cost of abandoning a time-tested partner like Russia. Russia, for its part, sees India as a crucial Asian pole in an emerging multipolar world order and as a long-term market, technology partner, and political counterpart in forums like BRICS, SCO, and the G20.
Looking ahead, I see a few clear trends:
Normalization of alternative payment and logistics systems
We will see more institutionalised use of national currencies, alternative messaging systems, regional banks outside the direct sanctions line, and maybe even digital currencies for specific corridors. Rupee–Ruble trade mechanisms that are today seen as “workarounds” will gradually become part of the normal infrastructure of bilateral commerce.
Shift from pure trade to co-production and joint innovation
To reduce vulnerability to sanctions, both sides will push for manufacturing in India and Russia rather than simple exports: defence co-development, localized pharma and medical devices, high-tech and AI collaborations, and joint ventures in critical minerals and clean energy.
Greater role for regions and business associations
Regional governments in Russia (Far East, Arctic regions, industrial hubs) and Indian states will increasingly drive project-level cooperation, supported by platforms like IBA. This “bottom-up” economic diplomacy will make the relationship more resilient than if it relied only on central governments.
Managed balancing by India
India will continue to deepen technology and investment ties with the West while maintaining energy, defence and strategic cooperation with Russia. The challenge will be to manage U.S. and EU expectations without compromising its core national interests. My prediction is that India will stay firm on this course of balanced engagement, even if it means occasional friction with Washington.
In essence, external pressure may complicate the methods of Indo-Russian cooperation, but it is unlikely to overturn the foundations of trust, mutual interest, and long-term complementarity that have been built over decades.
By Adedapo Adesanya
The President of the African Development Bank (AfDB), Mr Sidi Ould Tah, says more African countries are likely to regain or achieve investment-grade credit ratings by next year as reforms begin to deliver results and economic growth accelerates.
Several African sovereigns have already been upgraded in recent months, including Nigeria. However, Nigeria is not yet near investment-grade status.
In May, S&P Global Ratings upgraded Nigeria’s sovereign credit ratings to ‘B’ with a stable outlook, citing structural reforms under President Bola Tinubu and key drivers like higher oil production and improved fiscal revenue.
The country is still five notches from investment-grade. Under S&P’s rating scale, the progression follows— B → B+ → BB- → BB → BB+ → BBB- (investment grade).
S&P raised Morocco to investment grade last year and increased South Africa by one level to BB in November. Ghana, Zambia, the Ivory Coast and Kenya have also benefited from positive rating action linked to fiscal, debt and economic reforms.
“We’re quite confident that the continent will continue to grow very strongly and that African countries will be better rated in the coming years,” Mr Ould Tah said in an interview with Bloomberg.
“We’ve seen Morocco receive investment grade during the last few months, and we expect other countries by next year to get toward that,” he added.
The outlook reflects improving fiscal positions and reforms implemented across countries on the continent, even as the conflict in the Middle East threatens to slow economic growth and raise costs for energy-importing nations. Better credit ratings can help countries borrow at lower rates and fund development projects.
The AfDB projects the continent’s gross domestic product expansion will accelerate to 4.4 per cent next year, if the conflict in the Middle East does not extend for a longer period. It expects the continent to slow to 4.2 per cent this year.
The war in Iran has benefited oil producers such as Nigeria, Angola and Gabon, while exerting pressure on the fiscal positions of net energy importers such as South Africa, Kenya, Ghana and Senegal.
Mr Ould Tah said the bank is ready to support countries facing budget constraints and high debt burdens due to the impact of the Iran crisis, including increasing credit lines to them.
“The board of directors of the bank will examine in the coming days how the bank can increase the volume of resources it will provide to its member countries in this specific situation,” he said.
By Kestér Kenn Klomegâh
Within the framework of the Expert Council on Africa at Russia’s State Duma, the lower chamber of parliamentarians, during its annual round-table conference, held in late May 2026, focused concretely on food security in Africa.
Under the chairmanship of Deputy Speaker of the State Duma, Alexander Babakov, the council’s round-table session on Russian-African cooperation in the field of ensuring food security, introduction of closed cycle technologies in agricultural and bioeconomy projects, was held in the State Duma.
Opening the meeting, Alexander Babakov noted the importance of continuing cooperation with African countries already in the new convocation of the State Duma, to which elections will be held in September 2026. “I am sure that right from the beginning of the work of the new convocation, the theme of cooperation between Russia and African countries will work as an example for circulation and use in other areas,” he said.
Member of the Committee on the Development of the Far East and the Arctic, deputy chairman of the Expert Council on Africa, Nikolai Novichkov, in his speech stressed the importance of a gradual transition to trade with African high-tech countries. “Our African partners are interested in producing and processing food locally, including earning a living on it,” the parliamentarian stated.
Director of the Department of Partnership with Africa at the Russian Foreign Ministry, Tatiana Dovgalenko, drew attention to the continued importance of the humanitarian component of Russian-African cooperation, which, despite efforts, “unforeseen, including and along the lines of specialised UN agencies, the number of hungry people in the world, according to experts, has been growing over the past few years.” According to Dovgalenko, the food crisis is localised in about 10 countries, four of which are in Africa.
As first deputy chairman of the Committee on International Affairs, Alexei Chepa noted, the food crisis and a number of other serious threats on the African continent are today exacerbated by a complex international situation, with the United States and Israel versus Iran causing rising energy prices worldwide. “This has also reflected on the cost of fertilisers that needed to be purchased previously. Even if prices fall in a few months, the yield still won’t. And there will be problems in Africa. At the same time, we understand that population growth in the coming years will be at Africa’s expense,” Chepa underlined in his contribution at the meeting.
Alexei Chepa also mentioned the special role of security enhancement in Africa, including in countering extremism and terrorism.
As part of the continuation of the work of the roundtable to promote cooperation with African countries in ensuring food security, the introduction of closed-loop technologies in agricultural and bioeconomics projects was discussed. As a traditional procedure, some recommendations are addressed to the Government of the Russian Federation.
In addition to representatives of the State Duma, diplomats, scientists, experts from related fields, representatives of the Government of the Russian Federation and the business community took part in the round-table discussion.
By Kestér Kenn Klomegâh
The fourth India-Africa Forum Summit (IAFS-IV), originally scheduled for May 28 to May 31, 2026, in New Delhi, has been deferred to a later date due to the high risks of the Ebola virus, emerging and rapidly spreading from the Democratic Republic of Congo (DRC), in the central African region.
The African Union and Indian authorities jointly decided to postpone the summit to ensure the health safety of African leaders, stakeholders, corporate executives and entrepreneurs, amid public concerns over participants travelling from the virus-infested continent to New Delhi, India.
The India-Africa business dialogue is designed to strengthen bilateral partnerships, while facilitating networks for building not just real conversations but accessing new models of transacting corporate business and remoulding investments. It has three-fold dimensions: strategic partnerships, getting new clients and potential investors. An entirely significant collaboration that opens new markets.
Too often, businesses focus only on visibility and forget the power of relationships. But growth rarely happens alone. It happens through collaboration, trusted partnerships, and being in spaces where serious conversations happen naturally.
India-Africa has previously held a series of such high-level meetings with key trade and economic institutions in Africa as part of efforts to strengthen bilateral trade, investment cooperation and private-sector partnerships between India and Africa. These engagements aimed at identifying new economic opportunities and supporting the expansion of Indian-based companies into promising African markets.
Key Details & Context
Postponement Status: Following joint consultations, both sides mutually agreed to convene the summit at a later date. No rescheduled date has been announced at this time.
Summit Objectives: The summit, the first gathering since 2015, aims at deepening strategic multifaceted ties, focusing on South-South cooperation, technology transfers, capacity building, and healthcare resilience.
Official Information:
- Tracking the latest developments, both the Government of the Republic of India and the African Union have been working closely on the convening of the Fourth India–Africa Forum Summit (IAFS IV), initially scheduled to take place in New Delhi from 28–31 May 2026.
- The two sides exchanged views on the evolving health situation in parts of Africa and reaffirmed the importance of continued cooperation in strengthening public health preparedness and response capacities across the continent, including through support to Africa CDC and relevant national institutions.
- India reaffirmed its solidarity with the peoples and Governments of Africa and expressed its readiness to contribute to Africa CDC-led efforts aimed at addressing the evolving health situation, in line with the shared commitment to an Africa-led response.
- Recognising the importance of ensuring the full participation and engagement of African leaders and stakeholders, and mindful of the emerging public health situation on the continent, consultations were held between the Government of India, the Chairperson of the African Union, and the African Union Commission regarding the holding of the Summit and associated activities.
- Following these consultations, the two sides agreed that it would be advisable to convene the Fourth India–Africa Forum Summit at a later date.
- New dates for the Summit and its associated meetings will be finalised through mutual consultations and communicated in due course.
- India and Africa reaffirmed their longstanding partnership founded on solidarity, mutual respect, South–South cooperation, and a shared commitment to peace, development, prosperity, and the well-being of their peoples.
Previous Editions of the India–Africa Forum Summit
1st India–Africa Forum Summit
New Delhi, India – 2008
The first edition was held in New Delhi from 4–8 April 2008. It marked the launch of the India–Africa strategic partnership framework and resulted in the adoption of the Delhi Declaration and the India–Africa Framework for Cooperation.
2nd India–Africa Forum Summit
Addis Ababa, Ethiopia – 2011
The second edition was held in Addis Ababa in May 2011. Leaders focused on expanding cooperation in trade, infrastructure, human resource development, agriculture and peace and security.
3rd India–Africa Forum Summit
New Delhi, India – 2015
Theme: “Reinvigorated Partnership – Shared Vision” This edition was historic because all African countries were invited, making it one of India’s largest diplomatic gatherings with African leaders.
About the India–Africa Forum Summit: The first three Summits were held in New Delhi (2008 and 2015) and Addis Ababa (2011), resulting in important outcomes such as the Delhi Declaration and the Africa–India Framework for Cooperation. The India–Africa Forum Summit (IAFS) is the highest institutional platform for dialogue and cooperation between India and African countries, held under the leadership of the African Union.
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