India is planning to join the Moscow-led Eurasian Economic Union (EEU). Discuss rationale behind creating EEU and how India would be benefited if it is granted its membership. (200 Words)
Idea of EEU was being mooted from more than two decades but in recent times it has
been pushed and came into existence this year. It is Visualised as one of the major centres of economic power alongside the European Union (EU), the US, China and APEC.
Its objective is to expand markets and rebuild some of the manufacturing chains destroyed by the collapse of the Soviet Union. It has created a single market many million consumers, a common customs code, a common customs tariff, common foreign trade and customs regulations, and a common legal framework of technical regulations
Russia wanted to expand its influence to the countries that broke away from Soviet Union to prevent US, EU and China from gaining foothold, both in terms of economic and security in the region.
The European Union’s East partnership program and US trail of stationing NATO missiles systems at Poland to influence post-soviet states alarmed Russia to moot a deal to glue pro-Russian dependent nations.
China’s arrival: China interfering in Kazakhstan was seen by Russia as a potential threat to its sovereignty in the Eurasian region.
Economic revival: The aim to revive the old soviet might in economic sector which was lost after the soviet union collapse. Also economically Russia is battling number of economic sanctions, if the economic union is created it will decrease the trade dependency on western countries and also due to lowered tariff and non-tariff barriers there will be boost to trade and investment in the region.
With these countries having ¼ of the world energy resources, they would have better
cooperation in this area and can influence the world market
India’s benefit if it becomes a member of EEU
- Economically, since trade around the world is getting regional, India should maximise entry into trade unions to diversify market.
- Better cooperation with Russia and Central Asian countries. Though we have good relations with these countries, this goodwill was not converted into better economic and strategic relations because of connectivity and other problems
- Our energy security needs would be satisfied not just from Russia but also with Central Asia
- We can also have good market in these countries, especially in IT, pharmaceuticals, textiles, etc.
- This will boost our Make in India with better investments from these regions
- This might quicken the North-South Transport corridor for better connectivity
- With India’s bid to SCO if successful, EEU and SCO membership can supplement each other to safeguard the India’s interest in this region
- It fits in well with India’s “Connect Central Asia Policy“ that was unveiled in 2012 but has lacked pro-activeness from Indian side so far
- With Indo-Russia relations witnessing a protracted lull, engaging with its traditional neighbours could allay any Russian fears of India’s growing proximity to USA
India will definitely benefit by joining and use this advantage for the country’s development.