After years of on and off negotiations, India and the five-nation Eurasian Economic Union signed the Terms of Reference for negotiating a Free Trade Agreement (FTA).
The document was signed in Moscow by Ajay Bhadoo, Additional Secretary in the Commerce Ministry, and Mikhail Cherekaev, Deputy Director, Trade Policy Department of the Eurasian Economic Commission (EEC)—the regulatory body overseeing the Russia-led economic bloc.
The Eurasian Union established in 2015, comprises Russia, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic, representing a single market of 183 million people and a combined GDP exceeding $2.5 trillion.
Together with India, the potential FTA would cover economies with a total GDP of approximately $6.5 trillion.
Last year, India’s trade with the union reached $69 billion, but the lion’s share of this trade is between India and Russia ($63.8 billiion). Of this India’s exports were $4.8 billion with imports accounting for by discounted Russian oil.
India’s Commerce Ministry said the proposed FTA would boost market access for Indian exporters, diversify export destinations, and create new opportunities for Indian Micro, Small and Medium Enterprises.
India is expected to prioritize agriculture and engineering goods for greater access to the Eurasian market market and is also eyeing energy sector investments in Russia and Kazakhstan.
Officials said the terms of reference will serve as a blueprint for formal talks, helping unlock untapped trade potential and establishing a durable institutional framework for long-term cooperation.
There is a strong political will on both sides to conclude the agreement at the earliest, with the aim of positioning the India–EAEU FTA as a model for regional cooperation.
Formal negotiations on the FTA may be announced or launched during President Putin’s visit later this year.
