In a move aimed at diversifying its trade basket, India has signed the Terms of Reference (ToR) with the Eurasian Economic Union (EAEU) in Moscow to launch negotiations for a Free Trade Agreement (FTA). The EAEU comprises Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan, with observer status granted to Cuba, Moldova and Uzbekistan.The need for an FTA with the trading bloc gains significance in view of India’s substantial petroleum imports from Russia, which have been criticised by the United States in recent months. Russia is India’s top trading partner in the bloc, with India’s exports reaching $4.26 billion in FY 2023-24, while imports stood at $61.43 billion.
The ToR was signed by Ajay Bhadoo, Additional Secretary with India’s Department of Commerce, and Mikhail Cherekaev, Deputy Director with the Trade Policy Department of the Eurasian Economic Commission (EEC). Bhadoo and Cherekaev also met Andrei Slepnev, the Minister in charge of Trade at the EEC, to discuss further steps to formally launch the negotiation process, including organizational aspects of the future trade deal.
Both sides noted the growing trade turnover between India and the EAEU, which rose 7% year-on-year from FY 2022-23 to reach $69 billion in FY 2023-24.With a combined GDP of $6.5 trillion, India expects the proposed FTA to expand market access for its exporters by supporting diversification into new sectors and geographies, enhancing competitiveness against non-market economies, and benefiting Micro, Small and Medium Enterprises (MSMEs).According to the Department of Commerce, 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 partnership. Chief negotiators from both sides had also held a virtual meeting on Jan 9, 2025.(Edited by : Poonam Behura)
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