India, Russia-led trade bloc sign framework for FTA talks
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India and the five-member Eurasian Economic Union (EAEU) — comprising Russia, Armenia, Belarus, Kazakhstan, Kyrgyz Republic —signed the terms of reference to launch negotiations on a free trade agreement (FTA) in Moscow on Wednesday, per an official 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 MSMEs,” a statement issued by the Commerce Department on Wednesday noted.
The ToR provides the framework for negotiations and is expected to unlock untapped trade potential, increase investments and establish a stronger, durable India–EAEU economic, the statement added. It was signed by Commerce Additional Secretary Ajay Bhadoo and Deputy Director, Trade Policy Department, Eurasian Economic Commission (EEC), Mikhail Cherekaev.
India’s trade with the region is growing, although it is mostly due to increased imports of oil from Russia. There is a huge scope for growth in Indian exports to the bloc, including to Russia, which India hopes to explore through the FTA.
During his visit, Bhadoo also called on Minister in charge of Trade, EEC, Andrei Slepnev. “The heads of negotiation groups apprised the Minister about the milestone achieved with the signing of the ToR and discussed next steps to formally launch the negotiation process, including organisational aspects of the future trade deal,” the statement pointed out.
Discussions on the proposed FTA between India and the EAEU had taken place in early 2020 but had to be stalled because of the Covid-19 pandemic. Talks on the FTA subsequently resumed after the pandemic was over, but actual negotiations are awaited.
Published on August 20, 2025
