India and Russia have no preferential trade agreement in force, so Russian-origin goods pay normal customs duties. India and the Russia-led Eurasian Economic Union (EAEU) began formal free trade negotiations, with reports of advanced-stage talks and a bilateral trade target of USD 100 billion by 2030, but any agreement must be finalised and notified before it gives tariff relief. Customs value and origin evidence should match the transfer price. Defence, nuclear, energy and fertiliser trade follow sector rules, and sanctions and export controls affect what can be supplied, insured, shipped and paid for. Russia is not a land-border country, so the Indian public procurement restrictions on land-border bidders do not apply to Russian bidders by nationality.
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Key facts
| Trade agreement | None in force; India-EAEU free trade negotiations under way |
|---|---|
| Customs | Basic customs duty, IGST and other levies on imports; classification and valuation decide the cost |
| Origin | Where goods are wholly obtained or last substantially transformed; evidence needed for any preference once an agreement exists |
| Trade remedies | Anti-dumping and safeguard duties apply by product and origin |
| Standards | BIS certification and other product rules apply to the goods |
| Procurement | Land-border bidder restrictions do not apply to Russia by nationality; sector rules for defence and strategic buying apply |
| Sanctions | Dual-use, technology and financing restrictions can bar a supply even if Indian law allows it |
| Evidence | Invoices, packing lists, transport documents and certificates that agree |
The trade framework
| Topic | Position in outline | Practical point |
|---|---|---|
| Preferential tariffs | None in force with Russia or the EAEU | Plan for full duty until an agreement is notified |
| India-EAEU FTA | Formal negotiations started; reported at an advanced stage; some reports of a limited interim deal | Watch for notification; do not price in relief yet |
| Customs value | Transaction value, adjusted for freight, insurance and some fees | Related-party prices are tested; keep transfer pricing consistent |
| Origin | Wholly obtained or last substantial transformation | Document production and shipment |
| Payment | Must be routed through acceptable banks and channels | See the sanctions and payments guide |
Customs value and related-party sales
- Value is normally the transaction value, adjusted for freight, insurance and certain fees.
- Where buyer and seller are related, customs may test whether the price is influenced by the relationship.
- Keep the transfer pricing file and the customs declarations consistent. See transfer pricing.
- Royalties and licence fees connected to the goods can be added to the customs value.
Sensitive sectors
- Defence: licences, security clearance, offsets and the 74% automatic limit. Procurement by the Ministry of Defence follows its own manual.
- Energy and fertilisers: long-term supply and investment arrangements are often government-to-government, with sanctions exposure.
- Pharmaceuticals and engineering: regulatory approvals and BIS marks.
- Nuclear: reserved for the State; suppliers work through government programmes.
Public procurement
India's restrictions on bidders from land-border countries in central government procurement do not apply to Russian entities by reason of nationality, but a land-border beneficial owner can change that. Check tender conditions, local content preferences and the ownership chain before bidding.
Other compliance
- Importer-exporter code and GST registration are needed for the Indian importer.
- Sanctions, export control and dual-use rules in Russia, India and third countries can restrict supplies and re-exports.
- Shipping and insurance providers may decline Russia-linked cargoes. Confirm cover before committing.
- A false origin or value declaration can lead to penalties, seizure and prosecution.
Official sources
Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, Federal Tax Service (Russia), Bank of Russia and the Ministry of External Affairs (India).
Frequently asked questions
Is there a free trade agreement between India and Russia?
No agreement is in force. India and the Eurasian Economic Union have begun free trade negotiations, with reports of advanced-stage talks.
Do Russian goods get lower customs duty in India?
Not at present. Normal customs duties and IGST apply unless and until an agreement is notified.
How does customs treat related-party sales?
Customs may test whether the relationship influenced the price. Keep the transfer pricing and customs files consistent.
Can a Russian company bid in Indian public procurement?
The land-border bidder restrictions do not apply by nationality, but a land-border beneficial owner can change that. Check tender terms.
Do sanctions limit supply to or from an Indian subsidiary?
They can, through dual-use, technology, finance, insurance and shipping restrictions. Screen goods, counterparties and routes.
What is the India-EAEU trade target?
Reports describe a bilateral trade target of USD 100 billion by 2030.
What is the penalty for false origin or value?
Penalties, seizure of goods, possible prosecution and loss of import privileges.
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Last updated 26 October 2026. General information only, not legal or tax advice. Indian and Russian rules change often; confirm current requirements before acting.