The ToR was signed by Ajay Bhadoo, additional secretary, department of commerce, ministry of commerce and industry and Mikhail Cherekaev, deputy director, trade policy department, Eurasian Economic Commission (EEC).
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The EAEU was established on January 1, 2015, and has a single market, with 183 million people and a GDP of over $2.5 trillion.
Trade ties deepen amid rising imports from Russia
While the idea for an FTA between has been debated for some time, the talks had acquired pace in the last two years. After the start of the Ukraine conflict Russia became the third biggest source of imports due to the crude oil trade.
Trade between India and the EAEU reached $ 69 billion in 2024, marking a 7% increase over 2023. The combined GDP of India and the EAEU is $ 6.5 trillion. Within the EAEU most of India’s trade is with Russia. In 2024-25 India’s exports to Russia stood at $ 4.8 billion while imports were $ 63.8 billion.
FTA to boost MSMEs and diversify markets
“The proposed FTA is expected to expand market access for Indian exporters, support diversification of exports into new sectors and geographies, help in competing against non-market economies and deliver significant benefits to Micro, Small and Medium Enterprises (MSMEs),” a statement by the ministry of commerce and industry said.
India is seeking opportunities for its agriculture and engineering sector in Russia and investments in the energy sector.
Bhadoo also called on Andrei Slepnev, Minister in charge of Trade, EEC after the signing of ToR. The heads of negotiation groups discussed the next steps to formally launch the negotiation process, including organizational aspects of the future trade deal.
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Both sides expressed their commitment to early conclusion of the agreement and to building a long-term institutional framework for trade cooperation.
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.