New Delhi summit boosts India-EAEU FTA negotiations

New Delhi: The negotiations for a free trade agreement (FTA) between the Russia-led Eurasian Economic Union (EAEU) and India picked up momentum last week on the margins of the BRICS summit and the India-Russia Innoprom (joint industrial exposition) held here.

The next round of negotiations is expected to be held in November, ahead of Prime Minister Narendra Modi's Moscow trip for the annual summit. The November round of negotiations will focus on market access for both sides. Specific tariff decisions will be taken up in future rounds of talks, ET has learnt. This FTA will give India access to the huge natural resources of Eurasia.

India and the EAEU, comprising Armenia, Belarus, Kazakhstan, the Kyrgyz Republic and the Russian Federation, signed the terms of reference (ToR) to launch negotiations on an FTA in 2025. 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).


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ToR provides the framework for the negotiations and is expected to unlock untapped trade potential, increase investments and establish a stronger and more durable India-EAEU partnership.

EAEU was established by the Treaty on the Eurasian Economic Union. EAEU provides for free movement of goods, services, capital and labour, and pursues coordinated, harmonised and unified policies in the sectors determined by the treaty and international agreements within the union.