Putin set to sign pact to expand Indian labour in Russia

India and Russia are poised to sign a landmark agreement on workforce mobility at next month’s annual summit in New Delhi, aimed at safeguarding the rights of the growing number of Indian workers in Russia.

The pact is expected to facilitate a rise in the Indian workforce in Russia over the coming years, Caliber.Az reports per foreign media.

With a declining population, Russia is increasingly looking to Indians to fill labour gaps across key sectors. While Indian workers are already employed in construction and textiles, there is a rising demand for skilled professionals in machinery and electronics, sources familiar with the matter said.

By the end of 2025, over 70,000 Indians are expected to be working in Russia, according to quotas set by the Russian labour ministry. The issue featured in discussions this week when India’s labour minister met his Russian counterpart on the sidelines of an international conference in Doha.

Experts on Russian affairs suggest that the expanding Indian diaspora could become a cornerstone of India-Russia ties in the years ahead. Economic cooperation is already deepening: India has imported record volumes of Russian diamonds and gold this year.

According to a Russian media outlet, Russia’s diamond exports to India surged to $31.3 million in August, more than double the $13.4 million recorded in the same month last year. However, total Russian diamond supplies to India fell nearly 40% during the first eight months of 2025, reaching $342.1 million.

Russia remains the world’s largest producer of rough diamonds and has historically been a key supplier for India’s cutting and polishing industry. Yet the sector faces challenges from Western sanctions and tariffs.

The EU and G7 have barred direct imports of non-industrial Russian diamonds since January 2024, a ban later extended to stones processed in third countries but originally mined in Russia. In addition, the US has imposed a 50% tariff on cut and polished diamonds from India, including a 25% punitive levy linked to Indian purchases of Russian oil.

By Aghakazim Guliyev