In a boost for international business, a new maritime route between Chennai and Vladivostok has been launched as time and cost shaving maritime route that will facilitate more business between the India and Russia. The length of this new Eastern Maritime Corridor is roughly 5,600 nautical miles, and this new trade route has already begun helping to transport a range of commodities such as crude oil, coal, natural gas and fertilizers, as well as containers.
Faster and Cheaper Transit Times AND Costs
Another major advantage of the new route mostly self-explanatory is the cutting down of transit time. Before the methodology of the present work, it normally took over 40days to transport the goods through the traditional route from Russia to India passing through Europe. The new Chennai-Vladivostok route has brought down transit time, thus saving upto 16 days of shipping time averaging 24days. These shorter periods of time to transit translate to cost savings for both countries due to the cost cutting in trade.
Strategic Importance
The new route is quite strategic. Therefore, Vladivostok is the largest Russo-Asian Pacific Ocean port, situated approx 50 kms off the Sino-Russian border making the port a key entry point of the Russian Federation to the greater Asia-Pacific market. On the Indian side the ports like Chennai, Paradip, Visakhapatnam, Tuticorin have been used as such docking points based on the nature of cargoes and the final delivery destinations of the carriage.
Boosting Commodity Trade
After the implementation of the Eastern Maritime Corridor, export of different commodities including crude oil, coal and LNG has already begun. It has also supported the movement of fertilizers and containerized cargo goods which entail long term relations. Also due to these investments trade had improved and economic relations between India and Russia enhanced.
Effect it had on the relations between India and Russia
New route has also proved beneficial for the existing relations between India and Russia. After surpassing china mid 2024 as the largest importer of Russian oil, India has noted the gains of the new route in terms of cost efficiency. This has added even greater definition for India as a strategic trade partner for Russia and has improved cooperation in different spheres like energy, Defense and technology sectors.
In the future, the Eastern Maritime Corridor proved to be a potential GAP for more trade relations between India and Russia. As the volumes of trade are gradually increasing and the significance of the route in connecting the two countries, both nations are expecting to improve the economic relations. The route is also likely to open a gateway for export of Indian goods to Russia such as processed minerals, iron and steel, tea, marine product and granite.
India-Russia Trade Relations
India and Russia had a long-stranded bilateral relationship that has developed tremendously in recent years. As far as Trade relation is concerned India and Russia have developed complex, well-guarded bi-lateral trade relations reflecting their pro-trading strategic interests and benefits. The initial cooperation between India and Russia in trading relations was set down during the cold war time when Soviet Union became friendly with India. The relations provided huge Defense demands where Soviet Union supplied armaments and technologies to India. The formal relations of trade started with the signing of Indo–Soviet Trade Agreement in 1953 special emphasis on trade relations included machinery, military equipments and other goods.
Disintegration of the Soviet Union in 1991 demanded for a redesign of the bearings of the bilateral trade. Both the nations adjusted themselves to the emerging new paradigm of geopolitical circumstances where Russia was embracing economic reforms while India unshackling its economy. The bilateral relations were raised to the level of the Treaty of Friendship and Cooperation signed in 1993 and the Declaration on Strategic Partnership of 2000 creating a basis for intense trade and investment cooperation.
Today India and Russia have rather long-standing and quite stable but steadily developing bilateral trade, which covers different spheres, including energy and power, Defense, pharmaceutical industries, and agriculture. India’s export to Russia was valued bearing $5.24 billion in the year 2021-22 while the import was around $4.87 billion In the same year the target set for both the countries are the trading volume is $30 billion by 2025.
- Energy Sector: Energy cooperation is one of the most significant attributes of the bilateral commercial relation between India and Russia. Russia is one of the major suppliers of crude oil, natural gas and coal for India. New areas of cooperation that have evolved include decisively increasing stakes of Indian oil and gas companies in Russian oil and gas fields including stake of 20% in Sakhalin-1 project.
- Defense Cooperation: Trade in Defense continues to hold an important position in the strategic partnership of India and Russia. To date, Russia stands as one of India’s biggest sources of arms-export supplies consisting of efficient and modern machines like fighter aircrafts, submarines and missile. It is for this reason that the procurement of AK-203 rifles in India, integration and technology transfer agreements continue to be an on-going process.
- Pharmaceuticals and Healthcare: The pharmaceutical sector is one more common field of interest on both sides. India is a leading exporter of generic drugs, and Russian pharmaceutical companies have shown interest in collaborating with Indian firms to enhance production capacities and research capabilities. The COVID-19 outbreak also revealed the possibility of cooperation in the health care and the vaccine production.
- Agriculture and Food Processing: Exports on the agricultural front have also started and India is exporting tea, coffee, spices, processed foods etc to Russia. The two countries are exploring opportunities to enhance agro-industrial cooperation, focusing on food processing, dairy production, and agro-technologies.
Challenges and Opportunities
However, India Russia trade relations were not without certain problems even though the two countries have been recording progressive trade relations. The factors that affect the physical networking of work include poor linkages and congestion in the supply chain, high costs of transporting the goods. Additionally, the lack of diversification in trade products calls for expanding the scope of economic engagement.
- Opportunities for Growth: To overcome these challenges, both the countries are in processes to further improve connectivity prospects. The International North–South Transport Corridor (INSTC) which seeks to connect India with Russia through Iran and Central Asia is expected expand trading capacity by cutting time and cost of shipping. In addition, the new Eastern Maritime Corridor connecting Chennai with Vladivostok would add a considerable influence to the trade.
- Digital and Technological Cooperation: The digital economy and technological collaboration represent the main sources of Global sales growth. Opportunities for cooperation in AI, cyber security, space technology, etc. can lead future development of economic cooperation. The development of innovation and technology hubs will promote new knowledge and technology development and hence advance economic growth.
India-Russia Relations: Beyond Trade
India and Russian have a long-standing woven partnership, which cannot be reduced to trade and economic activities. This cooperation framework based on mutual understanding and the common essential interests includes various parameters.
Defense Cooperation
Geographical neighbourhood and historical experience have consolidated the military and Defense relations between India and Russia. This relationship dated back to the cold war where USSR was one of main arms exporter to India. At present, Russia continues to be a strategic Defense supplier of arms and equipment to the Indian Armed Forces. Some of these are the joint production of supersonic BrahMos cruise missile and the AK-203 rifles. Additionally, the two nations regularly engage in joint military exercises, such as Indra, which enhance interoperability and mutual trust between their armed forces.
Energy Collaboration
Energy cooperation continues to be one of the most important areas of cooperation between India and Russia. Oil and natural gas rich Russia is a major source of energy import and contributes to meet the increasing energy demand of India. Indian companies have invested in Russian oil and gas fields, such as the Sakhalin-1 project, ensuring a stable supply of energy resources. In addition, Russian nuclear technological capability has been instrumental in India’s civilian nuclear programme, including projects on nuclear power plant construction, for instance the Kudankulam Nuclear Power Plant in the state of Tamil Nadu.
Space Exploration
Promoting scientific cooperation between India and Russia, space exploration is a good example of such cooperation. The two nations’ cooperation extends back to the 1970 Russian (then Soviet Union) helping to put the first satellite namely Aryabhata in orbit and later taking the first Indian national Rakesh Sharma into space in 1984. The relations with this country remain friendly today through cooperation on projects and support in the framework of each other’s space programs. Interestingly, Russia sharing vital details for Indian’s big-ticket ‘Gaganyaan’ mission where Indian astronauts are proposed to be sent to space.
Cultural Exchange and Education
In cultural relations, India and Russia share the bonds of friendship for people which make the countries partners in terms of cultural relations. Both nations promote cultural relationship through festivals, art and educational programs. Russian Centre for Science and Culture in India and Jawaharlal Nehru Cultural Centre in Moscow play a significant role in the enhancement of cultural relation. Further students are also very active in academic exchanges and undergo scholarships for education in Russian universities in particular those studying engineering or medicine.
Diplomatic and Strategic Alignment
It is also imperative to understand that India and Russia enjoy good relations both diplomatically and politically; besides the two countries most of the times toe the same line in the international community. Currently both countries are within the BRICS formation which is comprised of Brazil, Russia, India, China, and South Africa; the SCO, and the UN. It involves cooperation on almost all of the international security challenges of time: terrorism, environmental degradation, and cyber threats etc. This strategic relationship is complemented by such forms of inter-state cooperation as the India-Russia annual Summit that prescribes meetings of leaders in the context of bilateral interaction and globalization processes.
Humanitarian assistance and disaster relief
India-Russia relations are deeply entrenched in history and characterized by strategic cooperation across various domains. The two countries have donated toward each other in calamities and disasters that have struck their nation respectively. For example, the Russian Federation supplied items of humanitarian aid to India after the earthquake constituting tsunami in December, 2004 and India also supplied medical support and aids to the Russian Federation in the period of COVID-19 virus outbreak. Such actions speak a lot of goodwill and cooperation between the two countries and the cordial relationship is highly commendable.