India has formally taken its first step towards a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), which includes Russia, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic. On August 20, 2025, both parties signed the Terms of Reference (ToR) to initiate negotiations, according to an official statement from the Indian government.
The signing ceremony featured Ajay Bhadoo, Additional Secretary in India’s Department of Commerce, and Mikhail Cherekaev, Deputy Director of the Trade Policy Department at the Eurasian Economic Commission (EEC). This development comes at a time when India faces mounting pressure from the United States, which has imposed additional tariffs on Indian imports while urging New Delhi to scale back economic cooperation with Moscow.
Despite these external challenges, trade between India and the EAEU has been steadily expanding. In 2024, bilateral trade reached $69 billion, reflecting a 7% increase compared to the previous year. The growth underscores the deepening economic relationship between India and the bloc, driven primarily by energy supplies, manufactured goods, and emerging sectors.
The Ministry of Commerce and Industry emphasized that the combined GDP of the EAEU stands at nearly $6.5 trillion, making the proposed FTA highly significant. Officials expect the agreement to open wider market access for Indian exporters, foster diversification into new sectors, and strengthen competitiveness against non-market economies. The initiative is also anticipated to deliver meaningful benefits to India’s Micro, Small, and Medium Enterprises (MSMEs), providing them with new opportunities in Eurasian markets.
Both sides reiterated their commitment to concluding the FTA at the earliest and establishing a robust institutional framework for long-term trade cooperation. If successful, the agreement could mark a pivotal shift in India’s trade strategy, balancing Western pressure with stronger ties to Eurasian economies.
