India to launch FTA talks with Russia-led Eurasian Economic Union

India is gearing up to initiate negotiations for a free trade agreement (FTA) with the Russia-led EAEU, which could open up access to the markets of five resource-rich post-Soviet states. According to experts on the EAEU, this agreement, if successful, is expected to bring significant benefits to Indian exporters in sectors such as engineering goods, electronics, and agriculture. The EAEU comprises Russia, Belarus, Armenia, Kazakhstan, and Kyrgyzstan.

India’s management of the Chabahar Port in Iran will further strengthen the FTA, providing a direct connectivity corridor to Eurasia. This will enable greater market access for Indian goods and services in a region that has not been a primary focus for Indian exporters until now.

This FTA is a strategic manoeuvre for India, a Shanghai Cooperation Organization (SCO) member, a calculated step to counterbalance China’s influence in Eurasia. It indicates India’s shift from traditional political and security perspectives to economic opportunities, as highlighted by Indian External Affairs Minister S. Jaishankar.

In the fiscal year 2022-23, India’s bilateral trade with EAEU countries included US$ 134.26 million with Armenia, US$ 111.81 million with Belarus, US$ 641.62 million with Kazakhstan, and US$ 56.56 million with Kyrgyzstan. The EAEU, which has already had FTAs with emerging economies such as Vietnam since 2016 and trade agreements with China, Iran, Singapore, and Serbia, is also negotiating FTAs with Egypt, the UAE, and Indonesia. These developments underscore the growing importance of the EAEU in the global trade landscape.

Source: Economic Times