India, 5-nation Eurasian Economic Union decide to negotiate FTA

NEW new delhi: republic of india and the eurasiatic economical unification (EAEU) – a five-member post-Soviet bloc that includes Russia – agreed on Wednesday to negotiate a free trade agreement (FTA).India and EAEU, comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic and the Russian Federation, signed the terms of reference (ToR) to launch the FTA negotiations in Moscow, the commerce and industry ministry said in a statement.“Shri Ajay Bhadoo, #India’s Chief Negotiator, signed the Terms of Reference with the EAEU, clearing the pathway for FTA talks with a combined bloc of US$6.5T GDP,” the department of commerce said in a social media post on X.Bhadoo also met with Eurasian Economic Commission (EEC) trade minister Andrei Slepnev to discuss next steps for trade, industry cooperation and export diversification, the post added. EEC is the permanent regulatory body of EAEU. The board of EEC consists of 10 members, two ministers from each member state and one of them is the chairman.The ToR was signed by additional secretary in the department of commerce Bhadoo, and deputy director in the trade policy department of EEC Mikhail Cherekaev, the ministry’s statement said.The heads of negotiation groups apprised minister Slepnev about the milestone achieved with the signing of the ToR and discussed next steps to formally launch the negotiation process, including organisational aspects of the future trade deal, it said.Both sides noted the growing trade turnover between India and the EAEU, which stood at $69 billion in 2024, registering a 7% increase over 2023.With a combined GDP of $6.5 trillion, the proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to micro, small and medium enterprises (MSMEs), the statement said.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, it said.“Both sides reaffirmed their commitment to the early conclusion of the agreement and to building a long-term institutional framework for trade cooperation,” it added.India and EAEU had been discussing greater economic cooperation since 2017. The matter was also discussed in July 2024 during the 22nd annual bilateral summit between Russia and India in Moscow. At that time, the two leaders – President Vladimir Putin and Prime Minister Narendra Modi – aspired to establish the EAEU-India free trade area.