India and the Eurasian Economic Union (EAEU), comprising Russia, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic, on Wednesday (August 20, 2025) signed the Terms of Reference (ToR) to launch negotiations on a Free Trade Agreement (FTA), the Indian authorities introduced.
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This comes amid stress from the U.S. — within the kind of further tariffs on imports from India — to scale back its financial ties with Russia.
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The ToR have been signed by Ajay Bhadoo, Additional Secretary within the Department of Commerce within the Government of India and Mikhail Cherekaev, Deputy Director within the Trade Policy Department within the Eurasian Economic Commission (EEC).
“Both sides noted the growing trade turnover between India and the EAEU, which stood at $69 billion in 2024, registering a 7% increase over 2023,” the Ministry of Commerce and Industry mentioned in a launch.
“With a combined GDP of $6.5 trillion, the proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to Micro, Small and Medium Enterprises (MSMEs),” it added.
The Ministry added that either side of the settlement reaffirmed their dedication to an “early conclusion” of the FTA and to “building a long-term institutional framework for trade cooperation”.
