Chennai: In the wake of Russian sanctions by the G-7, free trade with the Eurasian Economic Union can help India capture a large share of Russia’s trade with the European Union.
India has been holding several bilateral meetings with the Eurasian Economic Union (EaEU) to discuss the Trade Agreement. Draft texts and Terms of Reference (ToR) have been exchanged. EaEU’s trade data from January 2022 onwards, necessary to determine the scope of the agreement and potential gains from the agreement, is awaited from EaEU, Anupriya Patel, minister of state for Commerce and Industry informed the Rajya Sabha.
The Eurasian Economic Union comprises five countries — the Russian Federation, Kazakhstan, Belarus, Armenia, and Kyrgyzstan. Russia is not only the largest country in the bloc but also the biggest trade partner, with a share of 98 per cent in 2022-23.
“India’s exports to Russia and Belarus have grown in this financial year up till October 2023. India is continuously making efforts to increase exports. These efforts are particularly directed towards sectors such as agriculture, engineering, etc. which are growing,” she added.
According to the Federation of Indian Exporters Organisation (FIEO), India had a strong trade relationship with the erstwhile USSR. However, since the disintegration of the USSR, trade has seen a significant decline, especially among the disintegrated regions.
“Currently, Russia is dependent on the European Union for imports of several products. The sanctions imposed by G-7 countries will bring a halt to those imports and it is a great opportunity for India,” said K Unnikrishnan, joint director general, the Federation of Indian Export Organisations.
According to him, India has a trade deficit with Russia as we import crude and petroleum products in large quantities from Russia. Going ahead, diamond imports from Russia meant for re-exports to the US will substantially come down. But there are several sectors where mutual trade can be developed. China has made significant improvements in trade with Russia.
Food and agricultural products, engineering products, electronics, telecom products, technology products, leather and textiles are some among the products that can tap the opportunity Russia and other Eurasian countries offer.
