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Indian Retailers Eyes Russian Expansion

Indian expansion of russian retailing

This year, we have seen a massive shift in the geo-politics on the world. What triggered this? It is nothing other than Russia capturing Ukraine. Both these nations plays an important role in the global trade. From natural resources to consumer goods, both countries exports massive amounts goods to the world. The war has send ripples throughout its supply chain nations.

What Russia Ukraine War Means to India?

India has remained neutral until the present moment strengthening its alliances between Russia. This friendship has opened up a new frontier for bilateral trade. More than 40 million barrels of oil were purchased from Russia in the last several months. It is expected to increase in the coming future. It has also helped the Indian government to do trades in Indian Rupees. This is really a boon to Indian Rupee as it slides further down against the US dollar.

Indian Companies Eyes Russian Expansion

While the west sanctioned Russia by withdrawing its companies and halting trade between the two nations, it opened up new opportunities for Russia friendly nations. Majority of the US consumer brands, including apparels, have quit their operation in Russia.

Currently Russia is seeking fresh partners and vendors to fill the void asking Indian retailers to open shops in Russia. Majority of the Indian companies are reporting massive opportunities to expand and gain market share in Russia.

But Caution Ahead

Companies also inherit the risk of losing its reputation while making transaction with Russia. As the world media is against the Russian government, it is unlikely that consumers will see a Russian partnership as a positive event by their favorite brands. Indian government has repeatedly pointed out that the western government is still relying on Russian energy imports to survive. India has a strong relationship with Moscow as they have developed it from the time the World War 2 and the Cold War. Currently the trade between Russia and India has surpassed a record breaking $13 billion.

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