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India Resumes FTA Talks with Eurasian Bloc
India has restarted negotiations for a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), a bloc led by Russia and including Armenia, Belarus, Kazakhstan, and Kyrgyzstan. The two sides signed the Terms of Reference (ToR) in Moscow to formally relaunch talks. The EAEU represents a market with a combined GDP of over $6.5 trillion, while India’s trade with the bloc touched nearly $69 billion in 2024, reflecting a year-on-year growth of 7 percent.
Impact of U.S. Tariffs
The decision comes at a time when India faces heightened tariff barriers from the United States. Washington recently imposed duties of up to 50 percent on a wide range of Indian exports, citing concerns about India’s deepening trade and energy links with Russia. These tariffs, among the steepest faced by Indian exporters, have created pressure to diversify trade partnerships and secure new market access beyond Western economies.
Strategic Objectives
Indian officials say the FTA could open opportunities for exporters, particularly micro, small and medium enterprises (MSMEs), by giving them greater access to Eurasian markets. Energy cooperation, including stable supplies of oil and liquefied natural gas (LNG), remains a central focus of the talks. Officials also highlighted the potential for collaboration in manufacturing, agriculture, and pharmaceuticals.
Broader Diplomatic Context
India’s move aligns with its broader strategy of balancing relationships. Alongside the EAEU talks, India is expanding economic cooperation with other major partners including Brazil, Russia, China, and Gulf nations. The aim is to strengthen resilience against global disruptions and maintain autonomy in trade decisions despite Western economic pressure.
Outlook
Both sides have expressed commitment to finalizing a framework agreement at the earliest. If successful, the FTA could significantly reduce tariff barriers, boost investment, and provide India with a stronger foothold in non-Western markets at a critical time.
