Eurasian Economic Union (EAEU) Free Trade Agreement (FTA) Talks

18.09.2025

Eurasian Economic Union (EAEU) Free Trade Agreement (FTA) Talks

Context

India is in active discussions to finalise a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), a regional economic bloc comprising Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia. This aims to boost trade and economic cooperation with the bloc.

About EAEU

• Formation: Established in 2014 to encourage economic integration among member countries.
• Members: Russia, Belarus, Kazakhstan, Kyrgyzstan, Armenia.
• Headquarters: Moscow, Russia; Court located in Minsk, Belarus.

Objectives of EAEU

• Facilitate free movement of goods, services, capital, and labour among members.
• Coordinate policies and regulations for deeper economic integration.
• Create a cooperative platform with harmonized regulations across sectors.

India-EAEU FTA Negotiations

• Negotiation Focus: Removal/reduction of tariffs, expanded market access for goods and services.
• Strategic Importance: Diversify India’s trade beyond traditional partners, especially in energy, minerals, and technology sectors.
• Trade Volume: Currently modest but with potential for growth given India’s expanding economy and EAEU’s resource base.
• Challenges: Differences in trade standards, regulatory frameworks, and geopolitical considerations especially regarding Russia.

Economic Relevance for India

• Access to critical raw materials and rare earth elements abundant in Kazakhstan and Russia.
• Enhanced trade in sectors like pharmaceuticals, automobiles, IT services, and agriculture.
• Expanding India’s linkages with Central Asian and Eurasian markets, balancing global trade dependencies.

Geopolitical Significance

• Strengthens ties with Russia and allied countries within the EAEU.
• Acts as a counterbalance to other regional trade alliances and China’s Belt and Road Initiative.
• Supports India’s “Act East” and Central Asia engagement strategies.

Way Forward

• Finalise mutual concessions ensuring transparent regulatory cooperation.
• Strengthen bilateral trade promotion and business linkages.
• Monitor geopolitical developments to safeguard India’s strategic interests.
• Foster collaborative mechanisms for technology transfers and joint ventures.

Conclusion

An India-EAEU FTA represents a strategic economic and geopolitical opportunity, potentially diversifying India’s trade and strengthening its foothold in Eurasia. Successful negotiation and implementation will enhance India’s global trade footprint and regional influence.