NEW DELHI: India and Georgia are exploring the option to negotiate a comprehensive free trade agreement to promote bilateral economic ties.
Both the countries have decided to set up a group to conduct a joint feasibility study on the free trade agreement (FTA).
A "joint statement" to launch the study on the FTA was signed today by the Minister of Economy and Sustainable Development of Georgia Giorgi Gakharia and Commerce and Industry Minister Nirmala Sitharaman here.
The Commerce Ministry said in a statement said that upon the completion of the study, India and Georgia "may proceed to negotiations on an FTA once the internal procedures are completed and the mandates on negotiations are approved."
The joint feasibility study group consists of the officials of the two countries.
"The purpose of establishing the group is to provide an opportunity for more in-depth and systematic examination of potential FTA," it added.
It would discuss the possible scope of a potential pact and also analyse the sensitiveness of specific sectors, while recommending possible ways to address them.
Both the ministers expressed hope that the group would issue a report with the relevant analysis and recommendations within a period of six months.
The two-way commerce between the countries stood at USD 107 million in 2015-16. India has a positive trade balance with Georgia.
In a free trade pact, two or more trading partners either eliminate or drastically reduce duties on goods, besides liberalising norms to promote services trade.
India has already implemented similar agreements with several countries including Singapore, South Korea, Japan and Asean region. It is also negotiating such pacts with over a dozen countries, including Canada, Australia and New Zealand.
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