India and Eurasian Economic Union Sign Terms of Reference to Begin FTA Talks

In a significant step toward deepening economic cooperation, India and the Eurasian Economic Union (EAEU) have signed the Terms of Reference (ToR) to formally begin negotiations for a Free Trade Agreement (FTA). The announcement was made following a meeting in Moscow.

The EAEU is a five-nation economic bloc comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. The agreement marks a strategic move for India as it seeks to diversify its export markets amid rising global trade barriers, especially tariffs from traditional partners like the United States.

According to India’s Ministry of Commerce, the ToR establishes a framework for the upcoming FTA negotiations and is expected to unlock significant trade and investment potential. The agreement aims to enhance market access, attract investments, and build a strong institutional foundation for long-term economic cooperation between India and the EAEU.

With a combined GDP of $6.5 trillion, the EAEU represents a promising market for Indian exporters. The proposed FTA is anticipated to benefit Indian Micro, Small, and Medium Enterprises (MSMEs), help diversify exports across new sectors and geographies, and enhance India’s competitiveness against non-market economies.

In the fiscal year 2024, trade between India and the EAEU reached $69 billion, registering a 7 percent increase over the previous year. Russia remains India’s top trading partner within the bloc, accounting for $68.72 billion in bilateral trade, primarily due to increased crude oil imports. In contrast, India’s trade with the other member nations, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, stood at $315.18 million, $106.69 million, $349.48 million, and $56.78 million, respectively.

The ToR was signed 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). As the two sides gear up for formal negotiations, both reaffirmed their commitment to conclude the agreement at the earliest and build a robust, future-ready trade relationship.