Industry asked to name items from areas where India can be self-reliant
tariff concessions under its proposed free trade agreement (FTA) talks with the five-member Eurasian Economic Union (EAEU). Engineering goods, electronics and agriculture are expected to benefit from the agreement and the government asked the industry to identify restrictions, if any, that they face in the five members of the EAEU including Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
«The two sides have met and discussed initiating formal talks for the pact,» an official said, adding that in the light of this development, inputs have been sought from industry on barriers and products in which the country wants to achieve self-reliance.
New Delhi's concerns stem from the fact that India's exports to the union in April-January FY24 were $3.7 billion while imports were $51.7 billion due to crude oil imports from Russia. Moreover, the bloc has signed free trade pacts with China, Vietnam, Serbia and Iran, which could impact Indian industry's competitive position in any of the EAEU markets.
As per the joint feasibility study report on India-EAEU, New Delhi's export potential to the bloc is estimated at $14-24 billion.
«There are certain products with low-negotiation prospects where we have concerns on giving market access. Dairy and agricultural products are one such sticky agenda in many FTAs,» said an industry representative. Medicines, telephones, shrimp and prawn, auto components and steel products are India's top exports to the EAEU whereas coal, petroleum, diamonds, fertiliser and metals are among the
