News Excerpt:
India and Georgia have discussed the possibility of a trade deal for over seven years now. The two sides announced a joint feasibility study in April 2017 and accepted its findings when it was completed in August 2018. In January 2019, they signed a joint protocol to start negotiations for a FTA.
More detail about news:
- Recently, officials from Georgia requested India to sign a joint declaration towards launching the negotiations on the trade agreement between both countries.
- The (Indian) department of commerce is currently examining the proposal, adding a decision will be taken after elections end in India.
- According to Georgia’s ministry of economy and sustainable development website the feasibility study shows the two countries could have mutually beneficial trade in business and professional services, telecommunications, computers, tourism, audiovisual products and services.
- Sectors that will interest Indian investors include farming, pharmaceuticals, metallurgy, information technology, tourism, education and health care, audio-visual services, energy and environment.
- Georgia’s potential investment areas in India are tourism, education and winemaking, according to the study.
India-Georgia trade balance
- Georgia is at the crossroads of Asia and Eastern Europe and shares borders with Azerbaijan and Russia.
- Georgia has historically been economically aligned with the Russia-dominated Commonwealth of Independent States (CIS) of Central Asia.
- India has a positive trade balance with Georgia.
- However, in terms of value, trade remains low, with the country being India’s 120th largest trade partner.
- India’s exports to Georgia stood at $197.5 million in the financial year 2023-24, down 25.6 percent from the years.
- Imports from Georgia were $101 million, down nearly 40 per cent.
- India’s key exports to Georgia include rice, machinery, iron products, tobacco, medicines, and polycetals, which is used in manufacturing plastics.
- Georgia’s imports to India include copper anodes, petroleum coke, aluminium waste, and fertilisers.
- Connectivity is a constraint in trade between the two countries. The Black Sea, through Poti Port, is the only trade route available to them.
