India and Eurasian Economic Union (EAEU) Sign Terms of Reference (ToR) to Launch Free Trade Agreement (FTA) Negotiations.

In August 2025, India and the Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, signed the Terms of Reference (ToR) in Moscow, Russia, to initiate negotiations on a Free Trade Agreement (FTA). This agreement is expected to enhance trade relations, diversify market access for Indian products, and strengthen India-EAEU economic ties.

      - The ToR was signed by Ajay Bhadoo, Additional Secretary, Department of Commerce (DoC), under the Ministry of Commerce and Industry (MoC&I), Government of India (GoI), and Mikhail Cherekaev, Deputy Director, Trade Policy Department, Eurasian Economic Commission (EEC). This highlights collaboration at senior bureaucratic and policy levels between India and EAEU.

      - The proposed FTA aims to boost India’s exports, particularly supporting Micro, Small, and Medium Enterprises (MSMEs), while diversifying market access for Indian products within the EAEU region. It is also intended to strengthen bilateral economic relations and create a sustainable trading framework.

      - The ToR establishes the formal framework for FTA negotiations. It is expected to unlock untapped trade potential, improve investment flows, and foster a stronger and sustainable India-EAEU economic partnership. The agreement also sets the stage for future strategic economic cooperation and integration.

Main Point :-   (i) India-EAEU trade turnover reached USD 69 billion in 2024, representing a 7% increase from 2023. The proposed FTA is supported by the EAEU’s combined GDP of USD 6.5 trillion, indicating substantial market opportunities for India. This trade relationship complements India’s ongoing negotiations with other major partners, including the United States of America (USA).

      (ii) The EAEU is an international economic union in northern Eurasia that facilitates free movement of goods, services, capital, and labor. It was established through the Treaty on the EAEU and came into force on January 1, 2015, succeeding the Eurasian Economic Community (EvrAsEs). Belarus currently holds the presidency of the EAEU.

(iii) The EAEU’s main objectives are to enhance competitiveness of member state economies, increase cooperation among members, and promote stable development to improve living standards. The union consists of five member states: Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia. The FTA with India is expected to strengthen trade, support MSMEs, and contribute to sustainable economic development across the region.