Signing of the agreement
India EAEU Free Trade Agreement Negotiations Begin: India and the Eurasian Economic Union (EAEU) have signed the Terms of Reference (ToR) to launch negotiations for a Free Trade Agreement (FTA). The signing took place in Moscow, with Ajay Bhadoo, Additional Secretary, Department of Commerce, and Mikhail Cherekaev, Deputy Director, Eurasian Economic Commission, representing both sides.
The ToR lays the foundation for structured talks by setting out negotiating priorities and procedures. It signals a commitment to long-term trade and institutional engagement.
Economic opportunities ahead
The proposed FTA is expected to boost Indian exports across sectors like pharmaceuticals, IT services, textiles, agriculture, and machinery. It will support MSMEs by easing market entry and reducing trade barriers.
Diversifying trade into non-traditional markets is another core objective. Investment opportunities are expected in infrastructure, energy, and manufacturing, strengthening industrial cooperation.
Static GK fact: The EAEU was formed in 2015 and currently has five members – Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia.
Growth in bilateral trade
India–EAEU trade reached USD 69 billion in 2024, showing a 7% increase compared to 2023. This rising trend highlights the mutual benefits of stronger trade ties.
With an FTA in place, the trade volume is projected to expand rapidly, opening doors for Indian businesses in Eurasia’s emerging sectors.
Static GK Tip: India’s first FTA was signed with Sri Lanka in 1998, known as the India–Sri Lanka Free Trade Agreement.
Strategic and geopolitical value
The EAEU provides access to a market of over 180 million people and abundant energy resources. It also connects India to strategic routes such as the International North-South Transport Corridor (INSTC), enhancing supply chain connectivity.
For India, this engagement is not only about economic diversification but also about strengthening its geopolitical presence in Eurasia. Amid changing global trade alignments, the FTA aligns with India’s broader foreign trade policy of expanding beyond traditional Western partners.
Static GK fact: The INSTC is a 7,200 km multi-modal transport route connecting India, Iran, Russia, and Central Asia.
Way forward
Formal negotiations are expected to progress in phases, with both sides aiming for a balanced agreement that benefits businesses, investors, and consumers. The deal is positioned as a strategic step to unlock untapped trade potential and deepen India’s global economic integration.
Static Usthadian Current Affairs Table
India EAEU Free Trade Agreement Negotiations Begin:
| Topic | Detail |
| Agreement signed | Terms of Reference for FTA negotiations |
| Location | Moscow, Russia |
| Indian official | Ajay Bhadoo, Additional Secretary, Department of Commerce |
| EAEU official | Mikhail Cherekaev, Deputy Director, Eurasian Economic Commission |
| EAEU members | Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Russia |
| India–EAEU trade 2024 | USD 69 billion |
| Trade growth | 7% increase over 2023 |
| Target sectors | Pharmaceuticals, IT services, agriculture, textiles, machinery |
| Strategic route | International North-South Transport Corridor |
| Market size | Over 180 million people in EAEU |
