Industry urged to identify products in which India can achieve self-sufficiency

India is exploring the possibility of a free trade agreement with the Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Engineering goods, electronics, and agriculture are expected to benefit from the agreement, and the government has asked the industry to identify any barriers they face in trading with the EAEU countries. New Delhi is concerned about the trade deficit with the union, largely due to imports of crude oil from Russia.

According to a joint feasibility study, India’s export potential to the EAEU is estimated at $14-24 billion. Dairy and agricultural products are areas of concern, as they have low negotiation prospects in many free trade agreements. The EAEU has signed free trade pacts with China, Vietnam, Serbia, and Iran, raising potential competitive challenges for Indian industries.

India’s outbound shipments to the EAEU account for a small percentage of the country’s total exports, while imports from the union make up a larger share of its global imports. The government is seeking input from industry on tariff and non-tariff barriers in the EAEU, as well as products in which India hopes to expand in the future. Careful negotiation of rules of origin will be crucial to avoid circumvention of cheap Chinese imports, which have been a major trade partner for the EAEU.

Source .