India primarily exports gems and jewellery, cotton, coffee, tea, tobacco, machinery and instruments, processed minerals, plastic products, transport equipment, drugs, and pharmaceuticals to CIS countries.
The Russia-Ukraine war has already impacted the trade of several commodities from India. Government sources pointed out that Russia supplies 30% of raw diamonds to India, the availability of which has been affected due to its exit from the G7 and economic sanctions on the world’s largest country by land area. Attributing the year-on-year decline in merchandise exports to pricing factors rather than volumes, government sources noted that the drop in export value was due to lower prices of petroleum products and challenges in the availability of raw diamonds.
With a review underway of the existing Free Trade Agreement (FTA) between India and South Korea, India has sought lower duties on 15 to 20 products, including shrimp exports. Both countries already have a Comprehensive Economic Partnership Agreement (CEPA), which they are in the process of reworking.
Over the years, India’s trade deficit with South Korea has widened, with exports worth $6.41 billion in FY 2023-24 compared to imports worth $21.13 billion during the same financial year.
(Edited by : Anand Singha)
