Grand Opening Ceremony Of GJ Hub India Gems & Jewellery Show Bangalore - 2017

India-EAEC Strategic Partnership

2017-06-02


India & EAEC countries FTA to size US$ 2.7bn

The total GDP growth of the Eurasian Economic Union (EAEC) as a result of the conclusion of a free trade agreement with India could reach from US $ 1.4 billion in the short term and US $ 2.7 billion - in the long term. This was told a member of the Board (Minister) for Trade of the Eurasian Economic Commission (EEC) Veronica Nikishin at a business breakfast "EAEC - India Strategic Partnership", which was held at the St. Petersburg International Economic Forum.

In his speech, Veronica Nikishin said that the leaders of the EAEC countries and India on the basis of results of the joint research group analysis decided to start negotiations to conclude a free trade agreement (FTA). According to the Minister of ECE, analysis of mutual trade trends EAEC countries and India showed a significant increase in turnover. In the period from 2012 to 2014 he was the United States as compared with the 2010-2011 US $ 11 billion - to $ 9-10 billion...

Subsequently, however, against the backdrop of the crisis economic phenomena, the rate dropped again to 9 billion. This suggests that in the future, with the support of modern instruments of trade policy, trade growth could be very significant. One can predict the most significant potential for export growth as a result of an FTA in Belarus (20% compared with the current volume), Russia (18%) and Kazakhstan (12%). The total export growth potential for the EAEC, and India, is about 18%.  

According to our calculations, at the elimination of tariffs following the entry into force of the agreement is projected export growth of EAEC countries in India agricultural products. It concerns cereal vegetable oils, vegetables and beverages, including mineral water. It is also reported exports of such goods industry group, such as fertilizers, machinery and equipment, vehicles, certain types of jet engines, salt, steel products, timber, chemicals, rubber, plastics.

"Of course, the realization of these forecasts depends on how the future agreement will be in demand by the real sector of the economy, - said Veronica Nikishin. - In this regard, we attract business to our work; its vision is to be taken into account in the forthcoming negotiations. "