'India, Eurasian Economic Union finalizing broad contours for proposed FTA'

India and the five-nation Eurasian Economic Union bloc are working to finalise broad contours and their terms of reference on a proposed free trade agreement, an official said.

The five members of the Eurasian Economic Union (EEU) are Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

Additional Secretary in the Department of Commerce Anant Swarup said that on the EEU proposed free trade agreement (FTA), chief negotiators of both sides have already met and broad contours are being finalised.

"Scope and the ToRs (terms of reference) of the proposed free trade agreement are under stakeholder consultation internally in India and same with Russia and soon it will be exchanged so that the next steps can take place," he told reporters here.

 

On the timeline for both sides to formally launch negotiations for the pact, he said that unless there is an understanding on the ToR, the launch date is premature to be decided.
 

In such agreements, two or more trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. These agreements provide greater market access to Indian goods and services.

Russia is the top trading partner of India in the bloc, with bilateral trade worth $65.7 billion in 2022-23. India's exports to Russia stood at $4.26 billion in 2023-24, while imports were $61.43 billion due to an increase in crude oil imports.

The bilateral trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan was $131.38 million, $59 million, $331.7 million, and $55 million, respectively, in the last fiscal.