India eyes defence exports, tech transfer via Russia-led EAEU FTA

India and the Russia-led EAEU signed the Terms of Reference (ToR) in August 2025 to formally launch negotiations on an FTA.

• India seeks to expand defence exports via FTA talks with Russia-led EAEU bloc
• India's arms exports to Russia remain low, with trade skewed toward imports
• FTA aims to boost market access and rebalance India-Russia defence trade

Did our AI summary help?

India is looking to expand its defence exports and enable limited technology transfer through a free trade agreement with the Russia-led Eurasian Economic Union (EAEU), a government official said.

“We will look to expand defence exports, and some amount of technology transfer too,” the official said.

The EAEU, established in 2015, comprises Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, and aims to facilitate trade, harmonise regulations and reduce barriers among member states.

Currently, India’s direct defence exports to Russia remain limited.

Official trade data show that India’s arms and ammunition exports to Russia declined from about $18.3 million in 2019–20 to $1.2 million in 2022–23, before recovering modestly to around $4.7 million in 2023–24.

These shipments account for less than 1 percent of India’s total exports to Russia, underscoring that defence trade between the two countries is skewed toward imports rather than exports.

Russia has been India’s largest defence supplier for decades and accounted for around 36 percent of India’s total arms imports during the 2020–2024 period.

While this share has declined from much higher levels in earlier decades as India diversifies suppliers and boosts domestic production, Russia remains a key source for fighter aircraft, tanks and air-defence systems.

The proposed FTA with the Russia-led bloc is seen as a potential pathway to gradually rebalance this relationship.

India and the Russia-led EAEU signed the Terms of Reference (ToR) in August 2025 to formally launch negotiations on an FTA.

The first round of talks was held from November 26–28, 2025, and a second round is expected in February this year, with discussions likely to focus on non-tariff barriers, regulatory alignment and measures to improve market access for Indian exports into the bloc.

The step came amid growing trade between India and the EAEU, which stood at $69 billion in 2024, a 7 percent increase over 2023.

India and Russia have also pledged to increase bilateral trade to over $100 billion by 2030 during Prime Minister Narendra Modi's Moscow visit in 2024.