India and three-member Eurasian Economic Union have set up a joint study group to explore the feasibility of a free-trade agreement for promoting bilateral trade and investments.
The study group will submit its report within a year regarding the feasibility of an FTA between India and the Eurasian Economic Union - Russia, Kazakhstan and Belarus, Commerce and Industry Ministry said in a statement today.
A joint statement for establishment of a joint study group between India and the Eurasian Economic Union (EEU) was signed during the recent visit of Commerce and Industry Minister Nirmala Sitharaman to Russia.
India is already negotiating the International North-South Transport Corridor Project (INSTC) with Russia to promote bilateral trade.
The project proposes greater movement across Nhava Sheva (Mumbai) through Bandar Abbas (Iran) to Astrakhan (Russia) and Baku (Azerbaijan).
It also said the issue of renewal of Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and Russia also came up for discussion during Sitharaman's bilateral interactions with her counterpart in Russia.
During her visit, both sides also agreed that the present level of investment and trade between the two countries is "very low" .
In 2014-15, two-way commerce stood at USD 6.34 billion. India has received USD one billion during April 2000 and March 2015 from Russia.
"It was agreed to take all necessary steps to ensure that the target of bilateral investment of USD 15 billion each way by the year 2025 signed during the last Annual Summit is achieved," it added.
Sitharaman during her meeting with Russian Minister of Industry and Trade Denis Manturov also sought Russian investments into India.
Further, it said India has accepted the Russian invitation to participate as the partner country in an industrial fair - INNOPROM 2016- to be held at Yekaterinburg, Russia in July next year.
