India and EAEU Accelerate Free Trade Agreement Talks

India and the Eurasian Economic Union have given renewed momentum to their proposed Free Trade Agreement, with both sides signalling that negotiations on a goods-focused pact will be intensified in the coming months. The push follows a series of high-level engagements between New Delhi and Moscow in 2024 and 2025 and is now embedded in the broader roadmap for India–Russia economic cooperation through 2030.[1][5][6]

Background to the India–Eurasian Economic Union FTA Initiative

The Eurasian Economic Union (EAEU) is a regional economic bloc comprising Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. It seeks to facilitate free movement of goods, services, capital and labour among its member states through a common market framework. India has, for several years, explored the possibility of a Free Trade Agreement with the EAEU to expand market access and deepen its trade engagement with the region.

Structured discussions on an India–EAEU trade pact have been underway in various formats, including through the India–Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation (IRIGC-TEC), as well as through track-specific working groups on trade and economic cooperation.[1][3] These mechanisms have examined tariff lines, priority sectors and logistical issues such as customs cooperation, payment settlements and connectivity corridors.

The idea of a formal FTA gathered pace as India’s trade with Russia expanded sharply in the first half of the decade, driven mainly by energy imports and fertilizers.[1][2] Policymakers on both sides identified the need for a more predictable rules-based framework that could support diversification of trade, particularly by increasing India’s exports in industrial, agricultural and high-technology sectors.[1][2]

Recent Diplomatic Push and Joint Statements

The latest acceleration in joint efforts came in the context of the 23rd India–Russia Annual Summit in New Delhi, where the leaders adopted a detailed joint statement on their strategic partnership. In that document, the two sides noted the “ongoing intensification of the joint work on a Free Trade Agreement on goods between India and the Eurasian Economic Union covering sectors of mutual interest” and agreed to push these efforts forward.[1]

The joint statement links the FTA process to the newly adopted Programme for the Development of Strategic Areas of India–Russia Economic Cooperation till 2030, often referred to as “Programme 2030”. This programme outlines targets and priority areas in trade, investment, energy, transport, technology and industrial collaboration, and positions the FTA as a central instrument for achieving those goals.[1]

Subsequent coverage of the summit and related briefings underlined that both sides now view early conclusion of the agreement as an important objective. Reports summarising the outcome of the visit noted that India and Russia had “pledged to work towards early conclusion of a free trade agreement with the Eurasian Economic Union”, alongside a set of 16 agreements and understandings signed across labour mobility, health, maritime cooperation, fertilizers, customs and academic collaboration.[5][8][9]

Public remarks by senior leaders have echoed this priority. Addressing stakeholders while outlining the economic engagement roadmap with Russia, the Prime Minister said that both sides are “actively working towards the early conclusion” of the FTA with the EAEU, indicating that negotiations have moved beyond exploratory discussions to a more results-focused phase.[6]

“Both sides are actively working towards the early conclusion of the Free Trade Agreement with the Eurasian Economic Union.”[6]

Scope and Focus of the Proposed Agreement

The proposed pact is envisaged as a Free Trade Agreement on goods between India and the EAEU. According to the joint summit statement, it is intended to cover “sectors of mutual interest”, providing a framework to gradually reduce or eliminate tariffs and address non-tariff barriers affecting trade flows.[1]

The focus on goods reflects the current structure of India–EAEU trade, which is dominated by merchandise exchanges in sectors such as energy, fertilizers, minerals, metals, pharmaceuticals, machinery, chemicals and agricultural products. While services and investment cooperation are being pursued in parallel through other instruments, the FTA is expected to target market access for physical goods, rules of origin, customs procedures and technical standards.[1]

Negotiations are taking place alongside talks on a separate “mutually beneficial agreement on the promotion and protection of investments”, which is intended to resolve investor concerns, provide legal certainty and support projects across energy, infrastructure, manufacturing and emerging technologies.[1] Taken together, these frameworks are expected to strengthen the enabling environment for long-term commercial partnerships.

Institutional Mechanisms Driving the Process

Several institutional platforms have contributed to the fresh push on the India–EAEU FTA.

The India–Russia Intergovernmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation has reviewed progress on trade issues and endorsed steps to expand economic engagement. The joint summit statement welcomed the outcomes of the 25th and 26th Sessions of this commission and of the India–Russia Business Forum meetings in New Delhi and Moscow, noting their role in promoting trade and investment cooperation.[1]

In parallel, dedicated working groups on trade and economic cooperation have examined sector-specific issues and prepared ground for formal negotiations with the EAEU framework. Official briefings have recorded the launch of negotiations on the FTA with the EAEU, with the process linked to the wider economic roadmap between India and Russia.[3]

Business-to-business interactions at platforms such as the Saint Petersburg International Economic Forum and the Eastern Economic Forum have supplemented these official channels, enabling industry representatives to highlight tariff and non-tariff barriers, logistics constraints and standards-related challenges that a comprehensive FTA could address.[1]

Key Economic Context: Trade Volumes and Imbalances

The FTA push comes against the backdrop of substantial growth in India–Russia trade, much of it linked to energy and commodity flows. Bilateral trade expanded sharply between 2020 and 2025, with India’s imports from Russia, particularly crude oil and fertilizers, registering a notable increase.[2]

However, the joint statement acknowledges that this expansion has created an imbalance and underlines a shared ambition to grow trade in a “balanced and sustainable manner”, including by raising India’s exports.[1][2] The leaders reaffirmed the objective of achieving a revised bilateral trade target of USD 100 billion by 2030, and identified removal of tariff and non-tariff barriers, improved logistics, smooth payment mechanisms and regular interaction between businesses as key requirements.[1]

In this context, a structured agreement with the broader EAEU market offers a route for Indian exporters to diversify beyond traditional product lines and to access multiple economies under a single framework.

Trade Policy Priorities Reflected in the Initiative

The India–EAEU FTA initiative aligns with India’s wider trade policy approach, which emphasises engagement through carefully calibrated free trade agreements while protecting critical domestic interests. Simultaneously, the EAEU seeks to expand its network of external economic partnerships to provide its members with greater market access and supply-chain options.

The joint statement underscores the importance that both sides attach to an “open, inclusive, transparent and non-discriminatory multilateral trade system” with the World Trade Organization at its core.[1] Within that framework, the FTA is positioned as a complementary regional arrangement designed to reduce trade costs, address barriers specific to the India–EAEU corridor and provide clear rules for businesses.

Negotiators are expected to consider sensitive sectors, phased tariff reductions and safeguard provisions, in line with standard FTA practice, to ensure that the agreement supports industrial growth and employment in all participating economies.

Connectivity, Logistics and Payment Systems

Trade agreements of this scale depend not only on tariff reductions but also on the underlying connectivity and financial architecture. The joint summit statement highlights a series of steps aimed at strengthening transport corridors and payment mechanisms that are directly relevant to the effective functioning of any future FTA.[1]

On connectivity, both sides agreed to deepen cooperation in building “stable and efficient transport corridors”, with a focus on expanding logistics links and enhancing infrastructure capacity for the International North–South Transport Corridor (INSTC), the Chennai–Vladivostok maritime corridor and the Northern Sea Route.[1] These corridors are expected to reduce transit times and costs between India and the wider Eurasian region, making preferential tariff access more meaningful for businesses.

On payments, the joint statement records an agreement to continue developing systems of bilateral settlements using national currencies, and to pursue consultations on interoperability of national payment systems, financial messaging platforms and central bank digital currencies.[1] These efforts aim to ensure uninterrupted trade flows and facilitate transactions under the future FTA framework, particularly in sectors with long-term contracts such as energy, fertilizers and industrial goods.

Illustrative Sectors of Mutual Interest

While final sectoral coverage will be determined through negotiations, official documents and recent agreements highlight several areas where the FTA could have tangible implications.

Energy and Fertilizers

The joint statement emphasises the importance of long-term energy cooperation and records discussions on projects across oil, gas, nuclear power and renewable energy. It also notes steps to ensure long-term fertilizer supplies to India and explores the establishment of joint ventures in this area.[1] Preferential tariff arrangements and clearer investment protections could support such collaborations, stabilise supply chains and potentially influence input costs for agriculture and industry.

Manufacturing, High Technology and Industrial Cooperation

Programme 2030 highlights industrial cooperation and high-technology partnerships as priority areas. The leaders identified advanced technologies, joint manufacturing, research and development and technology transfer as key pillars of economic engagement.[1] An FTA could provide improved market access for machinery, electronics, automotive components, pharmaceuticals and chemicals, while an investment protection framework could facilitate joint ventures and manufacturing bases serving both domestic and export markets.

Agriculture and Food Products

Trade in agricultural commodities, including cereals, oilseeds, processed foods and beverages, is another area where tariff reductions and streamlined phytosanitary standards could expand two-way flows. For Indian producers, the EAEU market presents opportunities in processed foods, tea, coffee, spices and marine products; for EAEU exporters, India’s large consumer base offers demand for grains, edible oils and other agri-inputs.

Transport, Shipbuilding and Maritime Services

The joint statement references cooperation in maritime transport and the signing of a memorandum on training specialists for ships operating in polar waters.[1] As connectivity via the Northern Sea Route and the Chennai–Vladivostok corridor develops, shipbuilding, port services, logistics and maritime training could emerge as sectors where preferential access and common standards prove beneficial.

Administrative Implications for Government Agencies

A comprehensive FTA with the EAEU will require coordinated action by multiple Indian ministries and agencies, as well as their counterparts in the EAEU member states.

The Ministry of Commerce and Industry, through its trade negotiation and policy divisions, is expected to lead discussions on tariff schedules, rules of origin, safeguards and sectoral commitments. The Department of Revenue and the Central Board of Indirect Taxes and Customs will need to align customs procedures, documentation standards and risk-management systems to implement any agreed tariff concessions.

Sector-specific ministries, including those responsible for agriculture, chemicals and fertilizers, petroleum and natural gas, power, pharmaceuticals, heavy industry and electronics, will be involved in identifying sensitive products, assessing domestic capacity and suggesting timelines for liberalisation. Regulatory agencies will have to engage on technical barriers to trade, sanitary and phytosanitary measures and conformity assessment protocols.

On the EAEU side, the Eurasian Economic Commission and member-state ministries will similarly coordinate positions, ensuring that commitments are consistent with the union’s internal market rules and external agreements.

Potential Impact on Businesses and Exporters

For Indian businesses, a well-designed FTA with the EAEU could provide a more predictable environment for long-term planning, particularly in manufacturing, pharmaceuticals, engineering goods, processed foods and services linked to trade, such as logistics and certification.

Key potential benefits include:

• Reduced or eliminated customs duties on specified products over agreed timelines.
• Clearer and more transparent rules of origin, enabling firms to plan sourcing and value addition.
• Streamlined customs procedures and documentation, reducing transaction time and cost.
• Improved recognition of standards and certifications in defined sectors.
• Enhanced predictability for supply-chain and investment decisions through parallel investment protection arrangements.

Export promotion councils, chambers of commerce and industry associations may need to deepen outreach in EAEU markets, identify product niches, and provide capacity-building support to small and medium enterprises seeking to utilise preferential access. Trade facilitation measures, including digital platforms for documentation and advisory services, will be important in ensuring that smaller firms can benefit.

Labour Mobility and Services Linkages

Although the FTA under discussion is primarily focused on goods, recent India–Russia understandings on labour mobility and skilled professionals could have indirect linkages with the trade framework. Delhi and Moscow have signed a labour mobility pact that facilitates movement of skilled workers, and have recognised the role of such mobility in supporting economic cooperation.[1][5]

As sectors such as information technology, healthcare, engineering, construction and maritime services expand in response to trade and investment flows, the demand for skilled professionals is likely to increase. Clear mobility frameworks, combined with mutual recognition of qualifications in selected fields, could support project implementation and operations linked to trade under the FTA.

Multilateral Trade System and Regulatory Coherence

The joint statement stresses that both sides support the multilateral trading system anchored in the World Trade Organization and underscore the importance of an open and non-discriminatory regime.[1] Any bilateral or regional trade agreements concluded by India and the EAEU, including the proposed FTA, will therefore need to be consistent with WTO rules governing preferential trade arrangements.

Regulatory coherence will be a key consideration. This includes alignment with national legislation on customs, foreign trade, competition policy, intellectual property and technical regulation. Implementation frameworks will likely include joint committees, review mechanisms and consultation channels to address emerging issues and to monitor utilisation of preferences.

Timeline and Next Steps

While a specific conclusion date has not been formally announced, official documents and public statements characterise the joint work on the FTA as “intensifying” and directed towards “early conclusion”.[1][5][6] The reference to Programme 2030 suggests that negotiators are working within a medium-term planning horizon, with interim milestones possibly tied to sectoral outcomes and trade targets.

Upcoming meetings of the India–Russia Intergovernmental Commission, working groups on trade, and business forums in both countries are expected to serve as platforms to refine sectoral priorities, collect feedback from industry and review technical progress. Any eventual agreement will proceed through the standard processes of internal vetting, legal review and domestic approval in India and in the EAEU member states.

Implications for Citizens and the Wider Economy

For citizens, the effects of a Free Trade Agreement of this nature are likely to be felt over time through changes in product availability, pricing, employment patterns and investment activity.

Potential channels of impact include:

• Greater availability of certain imported goods, including industrial inputs and consumer products, at more competitive price points if tariff reductions are passed through.
• Expanded export opportunities for Indian producers in sectors that gain improved access to EAEU markets, potentially supporting jobs in manufacturing, agriculture and allied services.
• Increased investment and technology collaboration in sectors such as energy, fertilizers, pharmaceuticals and engineering, with downstream effects on infrastructure, logistics and services.
• Strengthened connectivity projects, including port and corridor development, which could have broader regional development and trade facilitation benefits.

Realisation of these outcomes will depend on the final contours of the agreement, domestic adjustment measures, and the ability of firms to adapt to new market conditions. Government agencies are expected to continue engaging with stakeholders to ensure that the FTA negotiation process reflects sectoral realities and that implementation frameworks support inclusive gains.