Next round of India-EAEU trade pact talks likely in Feb-end

Russian President Vladimir Putin at the summit of the Supreme Eurasian Economic Council in Saint Petersburg, Russia (file photo)
| Photo Credit:
Sergei Bulkin

India and the Russia-led EAEU bloc are likely to hold the second round of negotiations for the proposed bilateral free trade agreement in February-end after the Budget session as both sides are keen on fast-tracking the process, sources said.

New Delhi, however, will insist on removal of the high number of non-tariff barriers (NTBs), mostly existing in the form of standards and procedures, that Indian exporters face while dealing with the EAEU (Eurasian Economic Union) countries before it gets into any deal, a source said.

“We are going to constantly pursue the FTA with EAEU as it is a huge untapped market for us. But we are very clear that till the time we are not confident of the NTBs (removal), there won’t be a deal,” an official told businessline.

During his recent visit to India, Russian President Vladimir Putin said the early signing of the preferential trade agreement between India and the EAEU will reduce barriers to facilitate the movement of goods, services and capital. Apart from Russia, the EAEU includes Armenia, Belarus, Kazakhstan and Kyrgyzstan.

Trade deficit

India hopes to bring down its trade deficit with Russia through the FTA. In FY25, India’s exports to Moscow were at just $4.9 billion while its imports were at $63.8 billion (comprising mostly crude), leading to a trade deficit of around $59 billion.

Elaborating on the NTBs faced by Indian exporters in the EAEU, the officials pointed out that for many products, the standards were different in Russia and the EAEU bloc. “Our exporters are often not sure which standards they should follow. This creates a big problem,” the official said.

Moreover, language also proves to be a barrier. “The Russians want the packaging instructions, the leaflets etc to be in their language, which is difficult for Indian exporters. Sometimes their regulations are not translated from Russian into English, which again creates confusion,” the official said.

Russia is the top trading partner of India in the bloc. 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.

The first round of India-EAEU FTA negotiations were held in November 2025. The terms of reference was signed on August 20, 2025, outlining an 18-month work plan aimed at diversifying markets for Indian businesses, including MSMEs, farmers and fishermen.

Published on December 31, 2025