India begins trade talks with Russia-led EAEU today

India is set to start formal negotiations for a free trade agreement (FTA) with the Russia-led Eurasian Economic Union (EAEU) from Wednesday (November 26), Union commerce and industry minister Piyush Goyal said.

The EAEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, and the two sides signed a Terms of Reference on August 20 this year to lay the groundwork for the agreement.

"The FTA talks shall begin in New Delhi from Wednesday," the minister said.

Goyal said the pact is expected to create new market opportunities for Indian exporters, including MSMEs, farmers and fisheries, by opening access to a region with strong demand across multiple product segments.

The discussions form part of India’s strategy to diversify its trade relationships and reduce concentration in traditional markets, while widening its economic footprint across developing and emerging economies.

The terms of reference outline an 18-month work plan aimed at diversifying markets for Indian businesses, including MSMEs, farmers and fishermen.

Russia is the top trading partner of India in the bloc, with bilateral trade worth $68.72 billion in 2024-25 (exports $4.88 billion and imports $63.84 billion). The high import numbers are due to a jump in crude oil imports.

The bilateral trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan was $315.18 million, $106.69 million, $349.48 million, and $56.78 million, respectively, in the last fiscal year.

Southern African Customs Union (SACU) next?

In an interaction with reporters on Tuesday night, Goyal also indicated that India could soon explore a trade agreement with the Southern African Customs Union (SACU), signalling a widening of New Delhi’s engagement with major regional blocs.

SACU comprises South Africa, Namibia, Botswana, Lesotho and Eswatini, offering a sizeable market with strong resource-driven economies.

The bloc is also the world’s oldest customs union, established over a century ago, and a pact with it would mark another step in India’s strategy to deepen commercial ties across Africa.

Other fresh FTA tracks

India is also advancing multiple parallel trade negotiations beyond the Eurasian region. Discussions are underway for the second phase of the preferential trade agreement with Mercosur, the Latin American trade bloc comprising Brazil, Argentina, Uruguay and Paraguay. The upgrade is expected to expand the scope of tariff concessions and boost bilateral trade volumes.

Separately, talks with Israel are set to begin shortly in a virtual format for an early-harvest agreement, Goyal said. New Delhi is looking to deepen cooperation in key sectors such as agri-tech, mobility, services and innovation, where Israel is seen as a strong partner.

Goyal added that officials from India and Canada are expected to meet soon to formally relaunch the negotiation process, after a hiatus of nearly two years.