India-EAEU FTA Talks Advance: Commerce Secretary Reviews Progress in Moscow for $100 Billion Trade Goal

Economy

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Updated on 16 Nov 2025, 09:50 am

Commerce Secretary Rajesh Agrawal recently conducted high-level meetings in Moscow to accelerate progress on the proposed India–Eurasian Economic Union (EAEU) Free Trade Agreement (FTA). During his visit, Agrawal met with Andrey Slepnev, Minister in charge of Trade at the Eurasian Economic Commission, and Russian Deputy Minister of Industry and Trade Mikhail Yurin. These discussions aimed to build upon previous agreements and emphasized diversifying trade, enhancing supply-chain resilience, ensuring regulatory predictability, and fostering balanced economic growth.

A key objective driving these negotiations is the ambitious target set by leaders to achieve $100 billion in bilateral trade between India and the EAEU bloc by 2030. The talks with Mr. Slepnev specifically reviewed the next steps for the India–EAEU FTA in goods. The Terms of Reference, signed in August 2025, outline an 18-month work plan designed to create new market opportunities for Indian businesses, including Micro, Small, and Medium Enterprises (MSMEs), farmers, and fishermen. Negotiations will also cover services and investment tracks.

In discussions with Deputy Minister Yurin, the focus was on deepening cooperation, particularly in critical minerals, and enhancing trade diversification. Sector-specific opportunities were explored across pharmaceuticals, telecom equipment, machinery, leather, automobiles, and chemicals. Both sides committed to regular regulator-to-regulator engagement to address issues like certifications, agricultural and marine business listings, non-tariff barriers, and monopolistic practices, thereby improving the ease of doing business.

At an industry plenary, Agrawal encouraged Indian and Russian businesses to align their investments with the 2030 trade goal, highlighting India's infrastructure upgrades and digital advancements. The emphasis was on expanding India's export basket, de-risking supply chains, and converting initiatives into concrete contracts that drive value, volume, and employment. India views Russia as a vital partner in its national vision of becoming a developed nation by 2047.

Impact: This news has a moderate impact on the Indian stock market. The progress on an FTA with the EAEU bloc can create new export opportunities and improve trade dynamics for various Indian industries. Companies in sectors like pharmaceuticals, automobiles, chemicals, and machinery may see potential growth if the agreement is finalized and implemented effectively. It signals a strategic effort to deepen economic ties, which could lead to increased investment and trade flows, positively influencing sectors involved in international commerce.

Impact Rating: 7/10

Difficult Terms: * **Eurasian Economic Union (EAEU)**: A regional economic organization comprising several post-Soviet states, promoting economic integration and cooperation. * **Free Trade Agreement (FTA)**: A pact between two or more nations to reduce barriers to imports and exports among them. * **Terms of Reference**: A document that outlines the scope, objectives, and methodology for a project or negotiation. * **Micro, Small, and Medium Enterprises (MSMEs)**: Businesses categorized based on their investment and turnover, playing a crucial role in economic growth. * **Regulatory Predictability**: The extent to which business regulations are stable, transparent, and consistently applied, reducing uncertainty for investors. * **Non-tariff Barriers**: Restrictions on trade that are not in the form of tariffs, such as quotas, sanctions, embargoes, and regulations. * **Bilateral Trade**: Trade between two countries. * **Viksit Bharat**: A Hindi term meaning "Developed India," referring to India's vision of becoming a developed nation by 2047.