India, Russia-led EAEU sign terms of reference to launch talks for FTA

India's chief negotiator Ajay Bhadoo met EEC Trade Minister Andrei Slepnev to discuss next steps for trade and export diversification. (Courtesy: X | @DoC_GoI)

India and the Eurasian Economic Union (EAEU) comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic and Russia signed the Terms of Reference (ToR) to launch negotiations for a free trade agreement (FTA) on August 20 in Moscow.

The ToR provides a framework for negotiations.

Both sides reaffirmed their commitment to the early conclusion of the agreement and building a long-term institutional framework for cooperation in trade.

This step comes amid growing trade between India and the EAEU, which stood at $69 billion in 2024, registering a 7 percent increase over 2023, the commerce ministry said in statement.

“With a combined GDP of $6.5 trillion, the proposed FTA 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 Micro, Small and Medium Enterprises (MSMEs),” according to the statement.

India is presently negotiating trade deals with several nations and blocs, including European Union, Oman, Peru, and Chile.

While, talks with Oman have concluded with the trade deal expected to be signed soon, the next round of negotiations with EU are slated for September.