Eurasian Economic Commission reported earlier this month that governing bodies of Eurasian Economic Union and India have put “India - EEU Free Trade Agreement (FTA)” back to agenda, since it was first brought up in 2016.
On June 1, 2017, business event "EAEU – India: a strategic partnership" was held within the framework of the St. Petersburg International Economic Forum. Representatives from both sides have discussed trade of wide range of goods and services, which could provide a mutual benefit.
According to statistics of International Trade Centre, India does not represent one of the biggest trade partners for EEU, it ranks at the 19th place in overall trade turnover with EEU, by reports from 2016. Trade quota with India has however increased from 1.52% to 1.73% in last year and the overall trade turnover of EEU member states and India in 2016 was 8.82 billion USD, which is 0.1% higher than the year before. Out of these figures, export from EEU countries to India was 6 billion USD, while good imported from India are valued at 2.82 billion USD.
Russian Federation maintains trade relations with India more than other EEU member states. Belorussia could potentially gain biggest profit from the FTA, as it has the potential to rise its export share in India by 20%, whilst the estimate for Russia and Kazakhstan is 18% of increase.
Removing tariffs in trading would significantly increase export of agricultural products from EEU to India, some of which would include vegetables, vegetable oils, fruits and beverages, including bottled mineral water.
Beside the benefits, a risk remains for some of EEU member states, such as Armenia and Kyrgyzstan. As they hardly export food products to India and import mostly finished goods, local manufacturers could have hard times in keeping their current position on the EEU markets.