India is likely to advance talks for the proposed Free Trade Agreement (FTA) with the Russia-led Eurasian Economic Union (EAEU) during Russian President Vladimir Putin’s visit to New Delhi on December 4.
Government sources have indicated that India may explore a separate services pact with Russia as the EAEU bloc is a customs union, and trade deals exclude the mandate of services. India’s goods exports to Russia in FY 25 were valued at $4.88 billion, while both sides aim for $100 billion bilateral trade by 2030.
Stating that India is not keen to include gold and precious metals in a proposed trade deal with the EAEU, government sources indicated that the initial talks would focus on sensitivities on both sides, frequency of discussions, as well as on products where trade is aimed to be increased.
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Highlighting that while India aims to cut its $59 billion trade deficit with Russia and has flagged over 65 non-tariff barriers for its marine exports, sources pointed out that India aims to export more pharmaceutical products, chemicals, engineering goods, machinery, automotive, agricultural and marine goods to the Russia-led bloc. Sources identified four types of barriers faced by India’s pharma exports to the bloc: registration process, clinical trials, market access, and price registration.
The EAEU comprises Russia, Kazakhstan, Armenia, Belarus, and Kyrgyzstan, with observer status to Cuba, Moldova, and Uzbekistan. India had launched talks for an FTA with the bloc on 26th November in New Delhi, after the Terms of Reference (ToR) were signed on 20th August in Moscow.
FTA negotiations with the bloc are likely to cover issues like customs administration, e-commerce, IPR, sanitary and phytosanitary measures, tariffs, and technical regulations. Yesterday, officials in India’s Ministry of External Affairs (MEA) had indicated that Indian and Russian central banks were in talks for a settlement mechanism in local currencies and added that the document for an agreement for labour mobility between India and Russia has been finalised, and both sides are undertaking due processes for signing.
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