Free trade agreement (FTA) talks between India and the five-member Eurasian Economic Union (EaEU), headed by Russia, are expected to commence soon.
Exports of engineering items, electronics, and agricultural products from India would be prioritized under this proposed agreement’s efforts to increase trade with the EaEU nations.
States mainly situated in Northern Eurasia make up the Eurasian Economic Union (EEU), an economic union. It was established by a treaty that member nations signed in 2014 with the goal of facilitating the free flow of products, services, capital, and labor.
Kyrgyzstan, Russia, Belarus, Kazakhstan, and Armenia are the original members of the Eurasian Economic Union (EEU).
Facts Regarding Free Trade Agreement Discussions
Initially initiated in early 2020, the COVID-19 outbreak caused a halt to the discussions of the India-Eura
Trades talk
sian Union FTA. Resumption of negotiations has occurred within the last several months.
Nevertheless, the FTA has not yet begun formal discussions. In order to move the negotiations forward, the two parties have exchanged terms of reference and draft texts.
Since the Russia-Ukraine crisis erupted in February 2022, India’s trade deficit with Russia has grown dramatically, thus the country is eager to begin FTA talks as soon as possible.
As a result of heavy imports of cheap Russian oil, India’s trade deficit with Russia ballooned to more than $43 billion in the fiscal year 2022–23. To reduce this trade gap, India might boost its exports to Russia through an FTA.
Crucial Info
Foreign trade agreements between India and the Eurasian Union are expected to enhance Indian exports of engineering, electronics, agricultural, and telecom products to Russia and other Eurasian nations.
Up till October 2023, India’s exports to Russia of agricultural and engineering goods have grown at a respectable rate. Unfortunately, Western bans on sales of electronics and communications equipment to Russia have impacted exports.
Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia make up the Eurasian Economic Union, which has a GDP of almost $5 trillion. As a result of an FTA, Indian goods and services would have easier access to these markets.
The resource-rich Far East region of Russia is an area that India is eager to interact with more closely. An additional boost to bilateral trade could be achieved by enhancing connecting corridors along land and sea routes.
