Have India and the Eurasian Economic Union Initiated Talks for a Free Trade Agreement?
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Synopsis
In a significant move, India has initiated discussions with the Eurasian Economic Union to establish a Free Trade Agreement. This collaboration aims to unlock trade potential and enhance economic ties, benefiting exporters and diversifying trade sectors. Discover how this partnership could reshape India's trade landscape.
Key Takeaways
- India and EAEU signed Terms of Reference for FTA negotiations.
- Trade turnover reached $69 billion in 2024.
- Focus on sectors like pharmaceuticals and electric vehicles.
- INSTC project aims to enhance trade connectivity.
- Commitment to a long-term trade partnership.
New Delhi, Aug 20 (NationPress) India along with the Eurasian Economic Union (EAEU), which includes Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, has recently signed the Terms of Reference to commence discussions on a Free Trade Agreement (FTA), as stated by the Ministry of Commerce and Industry.
The signing took place in Moscow, where Ajay Bhadoo, Additional Secretary of the Department of Commerce, represented India, and Mikhail Cherekaev, Deputy Director of the Trade Policy Department, represented the Eurasian Economic Commission (EEC).
During this visit, Bhadoo met with the EEC’s Trade Minister, Andrei Slepnev. The leaders of the negotiating teams informed the Minister about this important milestone and deliberated on the forthcoming steps to officially initiate the negotiations, focusing on the organizational aspects of the future trade agreement, as noted in the statement.
Both parties acknowledged the growing trade volume between India and the EAEU, which reached $69 billion in 2024, reflecting a 7 percent increase compared to 2023. With a combined GDP of $6.5 trillion, the anticipated FTA is expected to enhance market access for Indian exporters, facilitate diversification into new sectors and regions, boost competitiveness, and provide substantial advantages to Micro, Small and Medium Enterprises (MSMEs), according to the official announcement.
The Terms of Reference outline the framework for negotiations, aimed at unlocking untapped trade opportunities, amplifying investments, and solidifying a robust and sustainable economic partnership between India and the EAEU. Both parties reiterated their dedication to swiftly concluding the agreement and establishing a long-term institutional framework for trade collaboration, the statement indicated.
Trade discussions between India and Eurasia span various sectors, including pharmaceuticals, fertilizers, and electric vehicles.
While India enjoys a trade surplus with most EAEU nations, it faces a considerable trade deficit with Russia, primarily due to oil imports.
The proposed International North-South Transport Corridor (INSTC) is regarded as a vital infrastructure initiative that could further improve trade connectivity and lower transportation expenses between India and Eurasia.
Point of View
I recognize the importance of this agreement between India and the EAEU. It signifies not only a boost in trade relations but also a strategic move that can enhance India's economic position on the global stage. Our commitment to covering such developments reflects our dedication to informative and unbiased reporting.
NationPress
07/10/2025
Frequently Asked Questions
What is the purpose of the Free Trade Agreement between India and EAEU?
The Free Trade Agreement aims to enhance market access for Indian exporters, support diversification into new sectors, and strengthen economic ties between India and the EAEU.
Which countries are part of the Eurasian Economic Union?
The Eurasian Economic Union comprises Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia.
What was the trade turnover between India and EAEU in 2024?
The trade turnover between India and the EAEU stood at $69 billion in 2024, marking a 7 percent increase from 2023.
What sectors are being discussed in the trade negotiations?
The trade discussions include various sectors such as pharmaceuticals, fertilizers, and electric vehicles.
What is the International North-South Transport Corridor?
The International North-South Transport Corridor (INSTC) is a proposed infrastructure project aimed at enhancing trade connectivity between India and Eurasia.
