India and the Eurasian Economic Union (EAEU) are in the midst of negotiating a limited interim trade deal, according to Russian Minister Maxim Reshetnikov. The talks, described as complex, aim to establish a temporary free trade zone covering specific product groups.
Background of the Negotiations
The EAEU, comprising Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia, was established in 2015 to foster economic integration. The bloc aims to remove trade barriers and coordinate economic policies among its members. In August 2025, India and the EAEU signed the Terms of Reference to formally launch negotiations for a free trade agreement.
Economic Context
Bilateral trade turnover between India and the EAEU reached USD 69 billion in 2024, marking a seven percent increase from the previous year. The first round of negotiations took place in November last year, highlighting the growing momentum in trade liberalization efforts.
Key Challenges
Reshetnikov noted the ambitious nature of India's requests, stating, "Things are more complicated with India: the economy is larger, mutual interests are more complex." This complexity underscores the challenges in reaching a comprehensive agreement.
"Therefore, we are currently discussing a limited and temporary free trade zone, that is, for a list of goods defined by product groups," Reshetnikov added.
Potential Impact
The interim trade deal is expected to enhance economic cooperation between India and the EAEU, potentially leading to increased trade volumes and reduced tariffs on selected goods. This development could pave the way for a more comprehensive free trade agreement in the future.
| Year | Bilateral Trade Turnover (USD Billion) |
|---|---|
| 2023 | 64.5 |
| 2024 | 69.0 |
The ongoing negotiations reflect a strategic effort to deepen economic ties and address mutual interests in a rapidly evolving global trade landscape.
