India and EAEU Set to Launch FTA Talks: A New Era in Trade Relations

India and the Eurasian Economic Union (EAEU), which includes nations such as Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, took a significant step towards cementing their economic ties by signing the Terms of Reference (ToR) to initiate negotiations on a Free Trade Agreement (FTA). The signing ceremony, held on Wednesday, marked the involvement of Ajay Bhadoo, Additional Secretary, Department of Commerce, India, and Mikhail Cherekaev, Deputy Director of the Trade Policy Department, Eurasian Economic Commission (EEC).

In related discussions, Bhadoo engaged with Andrei Slepnev, Minister in charge of Trade, EEC, to outline the strategic path forward. The dialogue between the heads of negotiation groups underscored the importance of the ToR milestone and outlined future steps, focusing on the organizational facets of formal negotiations, highlighting the growing trade relationship evidenced by a trade turnover of USD 69 billion in 2024 - a 7 percent increase from the previous year.

The envisaged FTA aims to provide Indian exporters with broader market access and facilitate economic diversification into new sectors and geographies. It promises to enhance competitiveness against non-market economies, creating significant opportunities for Micro, Small, and Medium Enterprises (MSMEs). Emphasizing a strengthened India-EAEU partnership, the agreement is framed to unlock significant trade potential and establish a durable economic framework. India, actively pursuing new trade agreements, continues to expand its global economic footprint, with recent FTAs reflecting its ambitious trade strategy.

(With inputs from agencies.)