India-EAEU Free Trade Agreement: Strengthening Economic Ties with Eurasia

India and the Eurasian Economic Union (EAEU) recently reviewed the 18-month roadmap for a proposed Free Trade Agreement (FTA) in goods, marking a significant step in India’s ‘Connect Central Asia’ and ‘Extended Neighbourhood’ policies. The EAEU is a powerful regional economic bloc comprising five nations: Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan. With the next round of negotiations scheduled for June 2026 in Moscow, both sides are working toward a comprehensive framework to enhance market access.

The primary driver for this agreement is the need to address India’s burgeoning trade deficit with the bloc, particularly with Russia. Following the surge in crude oil imports from Russia over the last two years, India’s trade imbalance has widened significantly. An FTA would provide Indian exporters of pharmaceuticals, engineering goods, textiles, and agricultural products preferential access to a market of over 180 million people. Furthermore, the EAEU is a resource-rich region, and a formal trade pact would secure India’s long-term energy and mineral requirements.

Beyond trade, the agreement holds immense strategic value. It complements the International North-South Transport Corridor (INSTC), which aims to reduce the time and cost of moving goods between India and Eurasia. However, challenges remain, including logistical hurdles, the need for robust non-tariff barrier resolutions, and the establishment of efficient cross-border payment mechanisms amidst global geopolitical shifts. For India, navigating these negotiations requires a delicate balance between economic interests and its broader foreign policy objectives in a multipolar world.