India and the Eurasian Economic Union have formally signed the Terms of Reference to initiate negotiations for a Free Trade Agreement, marking a significant step toward deepening economic ties between the two regions. The signing ceremony took place in Moscow, with Ajay Bhadoo, Additional Secretary in the Department of Commerce, representing the Government of India, and Mikhail Cherekaev, Deputy Director of the Trade Policy Department of the Eurasian Economic Commission, representing the EAEU.
During the visit, Ajay Bhadoo also met with Andrei Slepnev, Minister in charge of Trade at the EEC. The heads of the negotiation groups briefed the Minister on the milestone achieved and discussed the next steps required to formally launch the negotiation process, including the organizational framework for the proposed trade deal.
The trade turnover between India and the EAEU reached USD 69 billion in 2024, reflecting a 7 percent increase over the previous year. The EAEU comprises Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and the Russian Federation, and collectively represents a combined GDP of USD 6.5 trillion. The proposed FTA is expected to significantly boost Indian exports, support Micro, Small and Medium Enterprises, and enable diversification into new sectors and geographies. It is also aimed at enhancing India’s competitiveness against non-market economies.
The Terms of Reference lay the foundation for structured negotiations and are expected to unlock untapped trade potential, increase bilateral investments, and establish a durable institutional framework for long-term economic cooperation. Both sides reaffirmed their commitment to concluding the agreement at the earliest and to building a resilient and mutually beneficial trade partnership.
