Study Material | Test Series
Drishti IAS
call1800-121-6260 / 011-47532596
Drishti The Vision Foundation
(A unit of VDK Eduventures Pvt. Ltd.)
mains Test Series 2018
Eurasian Economic Union: Joint Study Group Setup by India
Jul 27, 2015

Moving swiftly on its decision to consider a free trade agreement with the newly formed Russia-led Eurasian Economic Union (EEU), India has initiated the process of setting up a Joint Study Group (JSG) to study its feasibility.

  • An FTA with EEU makes both economic and strategic sense for India.

  • India hopes to make strong gains in areas such as pharmaceuticals, textiles, agriculture and energy as well as attract investments in its infrastructure sector.

  • Established on January 1 this year, the EEU—an economic union that includes Belarus, Kyrgyzstan, Kazakhstan, Russian Federation and Armenia—offers a lucrative market with a joint population size of 180 million and a GDP of an estimated $4 trillion.

  • The JSG, which will have officials from both India and the EEU, will jointly look at the areas that a FTA, officially known as a Comprehensive Economic Partnership Agreement (CEPA), could cover, and whether it would be beneficial for both sides. 

  • An agreement to work on a JSG was reached between India and Russia last month. 

  • India is actively looking at establishing strong economic and trade relationship with countries other than the US and the EU, which are its traditional partners. 

  • The EEU provides an excellent opportunity to diversify Indian market base and reduce our dependence on just a few nations.

  • India had a close relationship with the erstwhile Soviet Union, and now that Russia is trying to build another economic union with former members, India wants to re-establish earlier ties with the region. 

  • India was already working on a CEPA with Russia and the Customs Union of Belarus and Kazakhstan. 

  • The formation of the EEU has widened the canvas of the proposed pact with the region.


Helpline Number : 87501 87501
To Subscribe Newsletter and Get Updates.

http://www.drishtiias.com/upsc-current-affairs-article-Eurasian-Economic-Union-Joint-Study-Group-Setup-by-India