India-EAEU Free Trade Agreement, Members, Aim, Significance

India and the Eurasian Economic Union (EAEU) FTA talks gained momentum after President Vladimir Putin’s State Visit to India on 4-5 December 2025. During the 23rd India-Russia Summit, both sides pushed for accelerating the India-EAEU Free Trade Agreement as part of their new 2030 Economic Roadmap.

What is the Eurasian Economic Union (EAEU)?

The EAEU is a regional economic union created to promote economic integration among member countries. It ensures free movement of goods, services, capital, and labour, and supports coordinated economic policies for stable development.

• Established: 2015 (via the Treaty on the Eurasian Economic Union)
• Members: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia
• Headquarters: Moscow, Russia
• Aim: Strengthen economic cooperation, modernize economies, raise competitiveness, and improve living standards.

Also Read: RELOS Agreement

India-EAEU Free Trade Agreement Significance

• Big Market Access: The FTA will open access to a USD 6.5 trillion Eurasian market, helping India increase exports in pharmaceuticals, engineering goods, textiles, and agriculture.
• Reduced Dependence on the West: India-EAEU trade touched USD 69 billion in 2024, growing 7% from 2023. This helps India diversify away from the US and EU amid rising tariff pressures.
• Stronger Energy Security: Russia already supplies 35-40% of India’s crude oil imports. An FTA can ensure stable and long-term access to oil, gas, coal, and other minerals at competitive prices.
• Lower Costs for Indian Businesses: Removing or reducing tariffs across EAEU countries can make Indian MSME exports cheaper and more competitive, especially in textiles, pharma, and machine parts.
• Boost to Connectivity: The FTA will support major trade routes like the International North-South Transport Corridor (INSTC), which can reduce transit time between India and Russia from 40 days to nearly 20 days.

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India-EAEU Free Trade Agreement Challenges

• Complex Tariff Structures: India and EAEU (Russia, Belarus, Kazakhstan, Armenia & Kyrgyzstan) have very different tariff regimes; harmonizing these across 5 countries slows negotiations.
• Sanctions on Russia: Over 14,000+ Western sanctions on Russia complicate payment systems, logistics, and compliance for Indian companies.
• Trade Imbalance: India’s trade with EAEU is about $16-17 billion, and over 85% is dominated by Russia, creating dependency and imbalance.
• Connectivity Barriers: INSTC and Chabahar routes are still not fully operational; cargo movement takes 35-45 days, increasing cost and reducing competitiveness.
• Regulatory & Standards Issues: India and EAEU follow different standards for pharma, engineering goods, and food products, requiring alignment before tariff cuts.
• Limited Market Awareness: Indian exporters have low awareness of EAEU demand patterns; only 3-4% of India’s global exports currently go to this region, limiting immediate gains.

How India-EAEU Engagement Can Be Strengthened

• India and EAEU should quickly implement the 2025-2030 economic cooperation plan to boost trade and investment.
• India should increase exports like medicines, textiles, machinery, and food products to reduce its trade gap.
• Both sides should expand local currency trade to reduce dependence on the US dollar and avoid payment problems.
• Strengthen ties through groups like BRICS and SCO to improve coordination and build wider economic links.
• Improve transport routes such as INSTC and the Chennai-Vladivostok Corridor to make trade faster and cheaper.
• Reduce customs delays and strict standards by simplifying rules and recognizing each other’s certificates for smoother trade.