India Potash Ltd and Rashtriya Chemicals and Fertilisers Ltd will each hold a 22.5% stake in the project, while National Fertilizers Ltd will take a 5% share. Uralchem will retain the majority stake and serve as the project leader, the sources added. The initiative aims to enhance India's long-term access to fertilisers essential for its large agricultural sector.
India, Asia's third-largest economy, depends significantly on imported crop nutrients to support farming, which employs about 40% of the workforce and accounts for around 15% of the country's nearly $4 trillion GDP. The new facility will operate using natural gas and follow a structure similar to India's established fertiliser joint venture in Oman, one source explained.
Fertiliser imports from Russia have grown substantially, rising more than threefold to $1.7 billion in 2024 from 2021 levels, with a high of $2.7 billion recorded in 2022. Overall fertiliser imports increased 82% year-on-year to $10.2 billion between April and October 2025.
In the 2024/25 fiscal year ending March, India imported 5.6 million metric tons of urea, a decrease from the peak of approximately 9.8 million tons in 2020/21. This reduction reflects expanded domestic production capacity and adjusted sourcing strategies. During April–October 2025, agricultural-grade urea imports reached 5.9 million tons, compared with about 2.5 million tons in the same period a year earlier.
India also sources urea from Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Efforts to diversify and secure stable fertiliser supplies continue amid fluctuating global markets.
The agreement, scheduled for signing during President Putin's two-day visit, will further strengthen long-term fertiliser cooperation between India and Russia.
By investing in overseas production, India seeks to ensure reliable supplies for its farmers while supporting growth in domestic food production. The joint venture represents a strategic step toward greater self-reliance in crop nutrients.
