India and EAEU: Forging a New Economic Alliance

India and the Eurasian Economic Union (EAEU) have taken a significant step towards strengthening economic relations by signing terms of reference to commence negotiations on a free trade agreement (FTA), according to official sources. The EAEU bloc includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.

This development comes as a strategic move by India to expand its export markets and mitigate high tariffs imposed by countries like the US. The agreement is expected to unlock untapped trade potential, boost investments, and foster a robust India-EAEU economic partnership.

The proposed FTA aims to provide expanded market access for Indian exporters, reduce customs duties, and support diversification into new sectors, creating significant benefits for India's Micro, Small, and Medium Enterprises (MSMEs). The pact, signed in Moscow, represents a commitment to concluding the agreement promptly and establishing a long-term framework for trade cooperation.

(With inputs from agencies.)