India and Eurasian Economic Union Start FTA Negotiations

1. What is happening?

India and the Eurasian Economic Union (EAEU) — a bloc of five post-Soviet states (Russia, Armenia, Belarus, Kazakhstan, Kyrgyz Republic) — have agreed to start negotiations for a Free Trade Agreement (FTA). They signed the Terms of Reference (ToR) in Moscow to formally launch the process.

2. Who is involved?

• India: Represented by Ajay Bhadoo, India’s Chief Negotiator and Additional Secretary in the Commerce Department.
• EAEU: Represented by the Eurasian Economic Commission (EEC), headed by Andrei Slepnev. The EEC is the permanent regulatory body of the EAEU.

3. Why is this important?

• The combined GDP of India and EAEU is $6.5 trillion.
• The FTA is expected to:
  • Expand market access for Indian exporters.
  • Diversify trade into new sectors and regions.
  • Strengthen competitiveness against non-market economies.
  • Provide benefits to MSMEs, small, and medium businesses.
  • Unlock untapped trade potential and increase investments.
  • India and the EAEU have discussed economic cooperation since 2017.
• The idea was highlighted again during the India-Russia summit in July 2024.
• Trade between India and the EAEU touched $69 billion in 2024, a 7% increase over 2023.
• The ToR signing now clears the way for formal negotiations, which will focus on framework, organizational aspects, and long-term cooperation mechanisms.

“International cooperation begins with trade, for it builds the trust that politics later secures.” – Anonymous