A high-level delegation from the Russia-led Eurasian Economic Union (EAEU), which includes Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, will visit New Delhi next month to begin negotiations on a proposed free trade agreement (FTA). Both sides aim to conclude the talks within 18 months, with the possibility of an earlier agreement. This new deal is considered economically and strategically significant, especially as India faces the new 50% tariffs from the U.S., its largest trade partner.
Officials stated that the trade deal would help address India’s significant trade deficit with Russia and fix non-tariff barriers that Indian exporters face in the Russian market, especially in sectors like agriculture and marine products. India also hopes to secure tariff concessions on traditional exports such as footwear, leather, textiles, and engineering goods. The commerce department believes the FTA will expand market access for Indian exporters and enhance India’s competitiveness, particularly for small and medium-sized enterprises (MSMEs).