India and the Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, and the Russian Federation, have entered into a binding framework to initiate negotiations on a free-trade agreement.
The terms of reference were signed in Moscow by India’s additional secretary of the Department of Ccommerce, Ajay Bhadoo, and the deputy director of the Trade Policy Department at the Eurasian Economic Commission (EEC), Mikhail Cherekaev.
The terms of reference establish the procedural and organisational basis for negotiations. Bhadoo also met Andrei Slepnev, the minister in charge of trade at the EEC, and heads of various negotiation groups, to review the execution of the agreement and the next steps required to launch negotiations.
Bilateral trade turnover reached USD69 billion in 2024, a 7% increase from 2023. With the EAEU’s combined GDP of USD6.5 trillion, the proposed free-trade agreement aims to secure broader market access for Indian exporters, ensure diversification across sectors and territories, and reinforce competitiveness against non-market economies.
The agreement will also focus on the anticipated benefits to micro, small and medium enterprises, which are expected to gain from expanded commercial opportunities.
India and the EAEU have formally recorded their intention to conclude the free-trade agreement as soon as possible to strengthen bilateral trade and promote long-term economic co-operation.
