Indo-EAEU Free Trade Agreement on the Horizon
Negotiations on free trade between India and the Eurasian Economic Union (EEU) set for this year
Gear up for some exciting trade developments! India is set to kickstart negotiations on a free trade agreement (FTA) with the Eurasian Economic Union (EAEU) this year. That's right, you heard it! India, the world's fastest-growing economy, is stepping up its game.
Andrei Sidelnikov, Russia's trade representative in India, has confirmed that work is in progress to establish a common financial market, independent payment infrastructure, and stable settlements among Eurasian enterprises. This move is a game-changer for India, opening up a wealth of new opportunities for exporting goods such as electronics and machinery.
But it's not just about the export boost. India stands to gain access to a resource-rich region, diversifying its trade partnerships and possibly, minimizing the risks associated with relying heavily on a few trade partners. In addition, this move could help counterbalance China's growing influence in the region, providing a strategic advantage in geopolitical terms.
The discussions on the FTA were first mooted during Prime Minister Narendra Modi's visit to Moscow in July 2021. Following that, relevant agencies have been given the task to speed up the agreement's preparation. As we speak, these talks are anticipated to enter an active phase this year, with work also underway on an agreement on mutual investment.
Now, you might wonder about the EAEU's other initiatives. Well, the EAEU is also looking to establish a common financial market and an independent payment infrastructure to facilitate transactions within the Eurasian region. Moreover, the EAEU will sign FTAs with the United Arab Emirates (UAE) and Mongolia by the end of June this year, further expanding its trade network.
So, buckle up! It's going to be an action-packed year in the world of trade, with India and the EAEU set to redefine their economic ties. As for other developments, India's diplomatic dance continues with ongoing trade talks between New Delhi and the US and EU as well. Stay tuned for more updates!
In the world of trade, India is engaging in negotiations with the Eurasian Economic Union (EAEU) for a free trade agreement (FTA), which may significantly impact politics and general-news. As the EAEU aims to establish a common financial market and independent payment infrastructure, this agreement could open new opportunities for Indian exports such as electronics and machinery, while diversifying trade partnerships and potentially minimizing risks.
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