India and Eurasian Economic Union sign terms of reference for FTA talks
Why in the news
India and the Eurasian Economic Union signed the Terms of Reference (ToR) in Moscow, formally starting the process of negotiating a free trade agreement. The signatories were India’s Additional Secretary in the Commerce Department, Ajay Bhadoo, and Mikhail Cherekaev of the Eurasian Economic Commission.
Key facts
- Bloc members: Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
- Economic size: the EAEU has a combined GDP of about USD 6.5 trillion.
- Trade: about USD 69 billion in 2024, a 7% rise over 2023.
- Aims: raise India’s exports, support MSMEs and diversify market access.
About the EAEU
The Eurasian Economic Union was created under a treaty that came into force in 2015, aiming at free movement of goods, services, capital and labour among its members. India sells textiles, pharmaceuticals, engineering goods and electronics to the bloc. India’s trade deficit with Russia rose from USD 6.6 billion in 2021 to USD 58.9 billion in 2024-25, mainly because of hydrocarbon imports, which is one reason a wider trade framework matters.
Exam angle
- Remember the five EAEU members and that talks are at the ToR stage.
- Note USD 69 billion trade and USD 6.5 trillion bloc GDP.
- The EAEU treaty took effect in 2015.