India and the Eurasian Economic Union (EAEU) are gearing up to formally launch negotiations on a Free Trade Agreement (FTA), a move aimed at strengthening economic ties and boosting bilateral trade across key sectors.
The announcement comes after a series of high-level consultations between Indian officials and representatives from the five-member bloc — Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Both sides have agreed to chart out a negotiation framework that will cover goods, services, investment, and technical cooperation.
According to officials, the proposed pact could significantly expand India’s market access in the Eurasian region while providing EAEU countries greater opportunities in one of the world’s fastest-growing economies. Current bilateral trade between India and the EAEU stands at around $15 billion, with energy, pharmaceuticals, textiles, gems & jewellery, and engineering goods forming the bulk of exchanges.
Commerce Ministry sources said that the agreement is expected to complement India’s efforts to diversify supply chains and reduce dependence on limited trade corridors. For the EAEU, the deal offers a chance to deepen engagement with South Asia amid shifting global trade dynamics.
Industry experts believe the FTA could pave the way for reduced tariffs, improved logistics cooperation, and joint ventures in areas such as digital trade, energy, and manufacturing. However, sensitive sectors like agriculture and dairy are likely to see cautious negotiations.
The first round of formal talks is expected to begin later this year, with both sides expressing optimism about a comprehensive and balanced agreement.
