India, Eurasian Economic Union Sign Terms of Reference to Begin FTA Negotiations

Moscow, August 20 : India and the Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and the Russian Federation, have signed the Terms of Reference (ToR) to officially launch negotiations for a Free Trade Agreement (FTA).

The ToR was signed by Ajay Bhadoo, Additional Secretary, Department of Commerce, Government of India, and Mikhail Cherekaev, Deputy Director, Trade Policy Department, Eurasian Economic Commission (EEC). During his visit, Bhadoo also held discussions with Andrei Slepnev, Minister in charge of Trade, EEC.

Both sides emphasized the significance of the agreement in deepening economic cooperation, noting that bilateral trade between India and the EAEU reached USD 69 billion in 2024, marking a 7 percent rise compared to 2023. With a combined GDP of USD 6.5 trillion, the EAEU represents a vast market for Indian exporters.

The proposed FTA is expected to provide Indian businesses—particularly Micro, Small, and Medium Enterprises (MSMEs)—with greater market access, diversification opportunities, and a competitive edge against non-market economies.

India’s Ministry of Commerce stated that the ToR would “unlock untapped trade potential, increase investments, and establish a stronger, durable India-EAEU economic partnership.” Both sides have also committed to an early conclusion of the agreement.

Over the past five years, India has strengthened its trade diplomacy by finalizing FTAs with Mauritius, UAE, Australia, EFTA nations, and the UK. Negotiations are ongoing for further trade deals with Oman, EU, Sri Lanka, Peru, Chile, New Zealand, and the United States, alongside upgrades to older agreements with ASEAN and South Korea.

The India-EAEU FTA is expected to further boost India’s strategic trade position while fostering long-term institutional frameworks for bilateral cooperation.