India & EAEU sign terms of reference to begin FTA negotiations

India and the Eurasian Economic Union (EAEU) have signed the Terms of Reference (ToR) to launch negotiations on a Free Trade Agreement (FTA) in Moscow.

The ToR was signed by additional secretary, department of commerce, government of India, Ajay Bhadoo, and deputy director, trade policy department, Eurasian Economic Commission (EEC), Mikhail Cherekaev.

During his visit Ajay Bhadoo also called on minister in charge of trade, EEC, Andrei Slepnev. The heads of negotiation groups apprised the Minister about the milestone achieved with the signing of the ToR and discussed next steps to formally launch the negotiation process, including organisational aspects of the future trade deal.

Both sides noted the growing trade turnover between India and the EAEU, comprising Armenia, Belarus, Kazakhstan, Kyrgyz Republic and the Russian Federation, which stood at $69 billion in 2024, registering a 7 per cent increase over 2023.

With a combined GDP of $6.5 trillion, the proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to Micro, Small and Medium Enterprises (MSMEs), Ministry of Commerce & Industry said in a release.

The ToR provides the framework for negotiations and is expected to unlock untapped trade potential, increase investments and establish a stronger, durable India–EAEU economic partnership. Both sides reaffirmed their commitment to the early conclusion of the agreement and to building a long-term institutional framework for trade cooperation.

ALCHEMPro News Desk (HU)