NEW DELHI– India and the Eurasian Economic Union (EAEU) have taken a significant step toward establishing a Free Trade Agreement (FTA), signing the Terms of Reference to formally launch negotiations, the Ministry of Commerce and Industry announced Wednesday.
The EAEU, which includes Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, signed the agreement in Moscow with India. Ajay Bhadoo, Additional Secretary in India’s Department of Commerce, signed on behalf of New Delhi, while Mikhail Cherekaev, Deputy Director of the Trade Policy Department at the Eurasian Economic Commission (EEC), represented the EAEU.
During his visit, Bhadoo also met Andrei Slepnev, the EEC’s Minister in charge of Trade. Negotiation group leaders briefed Slepnev on the progress made with the signing and discussed organizational steps to begin formal negotiations on the proposed pact.
According to the ministry, trade between India and the EAEU reached $69 billion in 2024, marking a 7 percent increase from the previous year. With the bloc’s combined GDP of $6.5 trillion, the FTA is expected to open new markets for Indian exporters, diversify trade into new sectors, and provide significant opportunities for Micro, Small, and Medium Enterprises (MSMEs).
Officials said the Terms of Reference provide the roadmap for the negotiations and are designed to unlock untapped trade potential, increase investments, and build a more durable India–EAEU partnership. Both sides reaffirmed their commitment to concluding the deal swiftly and establishing a long-term institutional framework for trade cooperation.
The proposed agreement is expected to cover a wide range of industries, including pharmaceuticals, fertilizers, and electric vehicles. While India maintains a trade surplus with most EAEU members, its imports of Russian oil have created a significant trade deficit with Moscow.
Observers also view the International North-South Transport Corridor (INSTC) as a key infrastructure project that could lower transportation costs and enhance connectivity between India and Eurasia, further supporting the trade pact’s goals. (Source: IANS)
