India, Russia-led trade bloc to commence talks for FTA

NEW DELHI: India and the Eurasian Economic Union (EAEU) signed the terms of reference to launch negotiations for a free trade agreement (FTA) in Moscow on Wednesday, a move that comes amid the US-India trade tensions.The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russian Federation. India signed an FTA with the UK and is in talks to stitch together a deal with the European Union. It is also working on a clutch of other FTAs with key trading partners, amid the tariff standoff with the US, and is also aiming to diversify into new markets. US President Donald Trump threatened to impose a 50% tariff on goods imports from India, including a proposed 25% for purchasing crude oil from Russia.The terms of reference was signed by additional secretary in the commerce ministry Ajay Bhadoo, and deputy director, trade policy department, Eurasian Economic Commission (EEC), Mikhail Cherekaev, an official statement said.During his visit, Bhadoo also called on minister in charge of Trade, EEC, Andrei Slepnev. Both sides noted the growing trade turnover between India and the EAEU, which stood at $69 billion in 2024, registering a 7% 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 benefits to MSMEs, the statement added.The terms of reference provide 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," the statement added.