An INR trade mechanism has been initiated to facilitate trade with Russia. The Reserve Bank of India (RBI) has issued guidelines for opening Special Rupee Vostro Accounts (SRVA) by foreign banks in Indian commercial banks. As of July 2, 2023, the RBI has approved 34 applications from different Russian banks for opening SRVA in 14 Indian commercial banks, the minister of state for commerce and industry Anupriya Patel recently said in a written reply in the Lok Sabha. 

India is one of the major suppliers of apparel and fabric for Russia. India has exported apparel worth $14.253 million in the first five months of this year. The shipment of apparel amounted to $29.848 million in 2022. The exports were valued at $66.394 million in 2021, $57.674 million in 2020, and $75.326 million in 2019, according to Fibre2Fashion's market insight tool TexPro. 

India exported fabric worth $2.045 million in January-May 2023. Earlier, fabric exports were noted at $4.200 million in 2022, $2.975 million in 2021, $1.963 million in 2020, and $3.458 million in 2019. 

The value of apparel and fabric exports was negligible in Russia's total requirement during the previous years. During 2021, the country imported apparel worth $7.952 billion from the world. India could share just 1.98 per cent in the trade. Its imports from India were valued at $157.625 million in the period, as per TexPro. Russia engaged in war with Ukraine in February 2022, which badly disrupted the normal trade of the country. 

Fibre2Fashion News Desk (KUL)