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India and EAEU Advance Talks on Free Trade Agreement to Boost Economic Ties
16 Nov
Summary
- India and Eurasian Economic Union reviewing roadmap for proposed free trade agreement
- Aim to diversify markets for Indian businesses, including MSMEs, farmers, and fishermen
- Russia is top trading partner in EAEU bloc, with bilateral trade of $68.72 billion in 2024-25
On August 20, 2025, India and the Eurasian Economic Union (EAEU) bloc signed terms of reference to start formal negotiations for a proposed free trade agreement. Last week, India's Commerce Secretary Rajesh Agrawal visited Moscow to hold talks with the Minister in charge of Trade of the EAEU Commission and the Russian Deputy Minister of Industry and Trade.
During the meeting, the two sides reviewed the next steps for the India-EAEU FTA in goods. The terms of reference outline an 18-month work plan aimed at diversifying markets for Indian businesses, including micro, small and medium enterprises (MSMEs), farmers, and fishermen.
The EAEU is a five-member economic union comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Russia is the top trading partner of India in the bloc, with bilateral trade worth $68.72 billion in the last fiscal year. The high import numbers are due to crude oil imports.
The proposed free trade agreement is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to MSMEs. Both sides also discussed ways to boost bilateral trade to $100 billion by 2030.
