India is keen to export more pharmaceutical products, chemicals, engineering goods, machinery, automotive, agricultural and marine goods to the Russia-led Eurasian Economic Union (EAEU) under the proposed trade agreement it is negotiating with the bloc, officials said.
In a move to reduce its $59 billion trade deficit with Moscow, New Delhi has flagged more than 65 non-tariff barriers faced by its marine exports to Russia, the largest country in the EAEU, and identified four categories of barriers faced by its pharma exports – registration process, clinical trials, restricted market access, and price registration.
The EAEU comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
“The initial discussions are on the frequency of talks, indicative products where they want to increase exports, and sensitivities or areas where imports would be prohibited or restricted,” said an official.
The issues are crucial as India is gearing up for Russia president Vladimir Putin visit Thursday.
India’s share in Russia’s import basket remains modest around 2.3%.
The official said India was not keen to include gold and precious metals in its trade pacts as gold and silver imports into the country rose after it inked a trade pact with the UAE. Oil accounts for nearly 21% of total India’s imports of oil, cementing Russia’s role as a key trading partner. Besides, hydrocarbons, fertilizers and vegetable oils are other imported products from Russia.
The FTA negotiations with the EAEU are likely to cover issues related to tariffs, customs administration, sanitary and phytosanitary measures, technical regulations, competition, intellectual property rights, and e-commerce.
India and the EAEU began talks for a trade deal last week. The EAEU market offers opportunities for Indian exporters, especially MSMEs.
Officials said India can also explore a separate service agreement with Russia as the trade agreements with EAEU bloc exclude service mandates.
The commerce and industry ministry has reached out to industry on customs clearance and documentation challenges, freight issues in reaching Russia and banking-related difficulties.
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