India has commenced negotiations with the Eurasian Economic Union (EAEU) over a Free Trade Agreement that is likely to focus on trade supplies to Russia as a result of EU sanctions affecting Russian consumer markets. The EAEU came into effect on January 1 this year, establishing a bloc of ex-Soviet states that is the Eastern European and Central Asian version of the European Union. Members of the EEU include Russia, Belarus, Kazakhstan and Armenia, with Kyrgyzstan set to join shortly, and Tajikistan and Turkey having been approached about joining.
The EAEU has generated much interest in China, which may also commence negotiations concerning a Free Trade Zone as this fits in with proposed Silk Road Economic Belt plans that effectively unite Eurasia through infrastructure, mutual cooperation, security and trade. If realized, China’s plans would unite the entire Eurasian land mass from the EU to Moscow, Tehran and the Gulf States, Delhi, Beijing and South-East Asia.
Indian Commerce and Industry Minister Nirmala Sitharaman signed off an agreement to commence discussions on the India-EAEU FTA with Minister of Trade of the Eurasian Economic Commission Andrei Slepnev during the recent 2015 St. Petersburg International Economic Forum. Trade between India and Russia has fallen, and with Russia now looking east for supplies given its ongoing political problems and sanctions with Europe, it is increasingly looking east for trade and development opportunities.
India is also a significant shareholder, along with China and Russia, of the newly instigated Asian Infrastructure Investment Bank, and has also just been granted membership of the Shanghai Cooperation Organization meaning India too has high level expectations of developing into Central Asia and the Eurasian region.
Details of the India-EAEU FTA will appear on this website when they are released.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
An Introduction to Doing Business in India 2015 (Second Edition)
Doing Business in India 2015 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes. We discuss a range of pertinent issues for foreign businesses, including India’s most recent FDI caps and restrictions, the key taxes applicable to foreign companies, how to conduct a successful audit, and the procedures for obtaining an employment visa.
An Introduction to Doing Business in China 2015
Doing Business in China 2015 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies that already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
Currency Devaluation in Russia, Kazakhstan, Ukraine and Belarus and its Effects on Business
In this issue of Russia Briefing, we will still be focusing on Russia, however we will also take a look at the other three countries mentioned. In all four countries we have seen a significant devaluation of the local currency. In Ukraine this was spread over the entire year, in Kazakhstan it occurred during the beginning of 2014 (with rumor of further devaluation of the Tenge in Q1, 2015) and the Russian ruble crashed at the end of the 2014.