What India can offer the Russian metals sector

For over three years now, the Russian metals industry has been operating with limited access to traditional markets. Companies have been forced to restructure their supply chains and seek out new export markets, as well as new suppliers of equipment and technology from friendly countries.

Metal production in Russia

Russia is a significant player in the production of ferrous, non-ferrous, and precious metals. The country ranks fifth in the world for steelmaking, third for the production of aluminium and nickel, seventh for copper and lead, and ninth for zinc and tin.

Russia also comes first globally in palladium production, second in gold and platinum production, and joint sixth in silver extraction (alongside Australia and Bolivia).

At the same time, Russia faces a shortage of certain products—in particular, stainless steel and specialty alloys.

Another area of shortage is production equipment. Following the withdrawal of Western companies from Russia, manufacturers have been seeking alternative suppliers. Casting and rolling equipment, smelting furnaces, metal processing units, and other machinery are critically important for the modernisation of production facilities.

The pivot to India

Since 2022, the sales geography of the Russian metals industry has been restricted, since the United States and the European Union have closed their markets to most metal exports from Russia. Under these conditions, India is emerging as one of the most promising destinations for Russian exports.

Export volumes are modest so far, as confirmed by data from India’s Ministry of Commerce and Industry. In 2024, Russian steel exports to India reached 804,700 tonnes, accounting for just 1% of Russia’s total steel production. Imports of Russian aluminium and aluminium products to India amounted to 15,000 tonnes (less than 1% of Russia’s output). “The main reason [for low exports] is costly and complex transportation. Russia has no direct transport corridor with India, and the roundabout route that does exist is extremely long. Meanwhile, China—the world’s largest producer of steel, aluminium, and other metals—is right next door to India,” notes Alexey Kalachev, an analyst at Finam.

Another limiting factor is India’s well-developed domestic metals industry, where Russian companies face competition from local producers.

Nevertheless, there is every opportunity to increase exports of Russian metal products to India. Kalachev points out that India is consuming metal products faster than it can produce them domestically, as the country expands its infrastructure and experiences rapid development in mechanical engineering. As a result, India’s steel imports remain substantial at approximately 8 million tonnes in the 2023/2024 financial year. Kalachev concludes that the Indian steel market continues to offer promising opportunities for Russian exporters.

A similar situation can be seen in the Indian aluminium market, with the country regularly importing finished aluminium products. By 2037, aluminium consumption in India could reach 8 million tonnes, making it an attractive export target, says Kalachev. India’s growing economy is also driving an increased demand for copper, with national consumption potentially doubling by 2030.

Independent industry expert Maksim Khudalov emphasises the potential for increased supplies of non-ferrous metals and ferroalloys from Russia to India. However, he notes that Indian buyers tend to adopt a tough negotiating stance, taking full advantage of the challenges Russian companies face in selling their metal products. What’s more, India has established trade relationships with Australia, South Africa, Brazil, Indonesia, and the Philippines, making it difficult for Russian firms to displace long-standing suppliers.

From India to Russia

In 2023, Russia imported 486,000 tonnes of stainless steel, with India accounting for 20% of that volume. China is the only country that supplies more stainless steel to Russia than India.

India is also a major manufacturer and exporter of mechanical engineering products. In the 2024–2025 financial year, its overseas shipments reached a record 116.7 billion US dollars, with the United States remaining their main export destination. Exports to Russia doubled in the 2023–2024 financial year, exceeding 1.2 billion US dollars.

Kalachev notes that though India is not yet a global leader in terms of quality, the country’s mechanical engineering sector is growing rapidly. In his view, the long and costly trade route between India and Russia makes importing Indian equipment a less attractive prospect for Russian buyers. Khudalov mentions the higher price of Indian equipment compared to Chinese alternatives as another limiting factor. Nevertheless, overall exports of Indian mechanical engineering products to Russia continue to grow, says Kalachev, estimating a current annual export volume of approximately 1.5 billion US dollars in monetary terms.