NEW DELHI: India and the five-nation Eurasian Economic Union (EAEU) on Wednesday signed the terms of reference (ToR) to initiate formal negotiations for a proposed free trade agreement (FTA), an official statement said.
The EAEU comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. The move is significant as India seeks to diversify its export markets amid high tariffs imposed by the US.
According to the Commerce Ministry, the ToR sets the framework for negotiations and is expected to unlock untapped trade potential, boost investments, and strengthen the India–EAEU economic partnership. Both sides reiterated their commitment to concluding the agreement swiftly and establishing a long-term institutional framework for trade cooperation.
Bilateral trade between India and the EAEU reached USD 69 billion in 2024, marking a 7% increase from 2023. With a combined GDP of USD 6.5 trillion, the proposed FTA aims to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver substantial benefits to micro, small, and medium enterprises (MSMEs).
The ToR was signed in Moscow by Ajay Bhadoo, Additional Secretary in India’s Department of Commerce, and Mikhail Cherekaev, Deputy Director of the Trade Policy Department at the Eurasian Economic Commission (EEC).
FTAs like this typically involve the elimination or significant reduction of customs duties on a broad range of goods, providing greater market access for Indian products and services.
Within the EAEU, Russia is India’s top trading partner, with bilateral trade worth USD 68.72 billion in 2024-25, including USD 4.88 billion in exports and USD 63.84 billion in imports, largely driven by crude oil. Trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan stood at USD 315.18 million, USD 106.69 million, USD 349.48 million, and USD 56.78 million, respectively, in the last fiscal year.
