Lok Sabha Question No. 168 (STARRED), answered on 2019-07-03
Subject: Trade between India and Central Asia
Ministry: COMMERCE AND INDUSTRY
Asked by: Giridhari Yadav, Rama Devi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA STARRED QUESTION NO. 168 TO BE ANSWERED ON 03 rd JULY, 2019

## TRADE BETWEEN INDIA AND CENTRAL ASIA

## 168. SHRI GIRIDHARI YADAV    &        SRIMATI   RAMA DEVI

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:-

- (a) whether the volume/quantum of trade between India and the countries of Central Asia region is not upto the desired level;
- (b) if so, the details thereof and the reasons therefor along with the reaction of the Government thereto;
- (c) whether the Government has conducted any study and survey in this regard;
- (d) if  so, the details and the findings thereof; and
- (e) the steps  taken/being  taken  by  the  Government  to  increase  trade  with Central Asian countries during the last three years and the current year along with the success achieved therefrom?

## ANSWER

## THE MINISTER OF MINISTRY OF COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) To (e): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 168 FOR ANSWER ON 03 rd JULY, 2019 REGARDING 'TRADE BETWEEN INDIA AND CENTRAL ASIA'

(a)  &    (b)  The  details  of  the bilateral merchandise trade  between  India  and  Central Asian countries are given below:-

## Value in USD Million

| S. No   | Country      | 2017-18   | 2017-18   | 2017-18     | 2018-19   | 2018-19   | 2018-19     |
|---------|--------------|-----------|-----------|-------------|-----------|-----------|-------------|
| S. No   | Country      | Exports   | Imports   | Total Trade | Exports   | Imports   | Total Trade |
| 1       | KAZAKHSTAN   | 125.37    | 907.43    | 1,032.81    | 143.13    | 708.78    | 851.91      |
| 2       | KYRGHYZSTAN  | 28.59     | 30.94     | 59.53       | 30.02     | 2.59      | 32.6        |
| 3       | TAJIKISTAN   | 23.94     | 50.29     | 74.24       | 22.28     | 4.24      | 26.52       |
| 4       | TURKMENISTAN | 54.31     | 26.15     | 80.46       | 45.64     | 20.63     | 66.27       |
| 5       | UZBEKISTAN   | 132.72    | 101.67    | 234.39      | 201.41    | 126.73    | 328.14      |
|         | Total        | 364.93    | 1,116.49  | 1,481.42    | 442.48    | 862.97    | 1,305.45    |

Some factors impeding higher level of trade with Central Asian countries include language  barriers,  stringent  process  of  registration  of  products,  problems  in dispute  settlement,  weak  banking  and  financial  system,  low  accessibility, poor connectivity and visa Issues with these countries.

Efforts  are being  made  to  boost  this trade  by resolving  various  trade  related matters  through  the  existing  institutional  mechanisms  of  Inter-Governmental Commissions  (IGCs) /  Joint  Commission  Meetings and  Joint  Working  Groups (JWGs) between India and Central Asian countries.

- (c) & (d) Yes Sir.

The  Central  Asian Countries  namely Kazakhstan  and  Kyrgyzstan  are members of the Eurasian Economic Union (EaEU). A Joint Feasibility Study has been conducted to explore the possibility of Free Trade agreement with EaEU  where  Russia, Armenia,  Belarus are  the  other  three  countries.  The

Joint Feasibility  Study  (JFS)  has  found  that there is  a  significant realizable potential  to  enhance  the  bilateral  trade  with  Kazakhstan  and  Kyrgyzstan through a trade agreement.

Further, a Joint Statement has been shared with Uzbekistan to commence a Joint Feasibility Study to explore the feasibility of Preferential  Trade Agreement between India and Uzbekistan. The likely potential of the bilateral trade would be determined once the Joint Feasibility Study gets completed.

- (e) There are existing institutional mechanisms in the form of Inter-Governmental Commissions (IGCs), Joint Commission Meetings (JCMs) and Joint Working Groups  (JWGs)  where  bilateral trade  issues  are  taken  up  for  discussions. During  the  last  three  years  and  in  the  current  year  meetings  of  3  IGCs,  2 JWGs  and  3  JCMs  have  been  held.  The  Ministry  also takes up  export promotion matters with Export Promotion Councils, Trade Bodies, Commodity Boards and Embassies of India in the Central Asian Region for identifying and addressing issues which hamper exports.

On account of such efforts on the part of various stakeholders, including the Government,  India's  merchandise  export  in  the  aggregate  to  the  Central Asian countries increased in 2017-18 and 2018-19 vis-a-vis with the respective previous financial year.