New Delhi: India and the Russia-led EAEU group will start formal negotiations for a trade agreement from Wednesday, Commerce and Industry Minister Piyush Goyal said on Tuesday.
India and the five-nation grouping, the Eurasian Economic Union (EAEU), on August 20, inked the terms of reference for the agreement.
“The FTA talks start from tomorrow here,” Goyal told reporters here.
The Terms of Reference signed on August 20, 2025, outline an 18-month work plan aimed at diversifying markets for Indian businesses, including MSMEs, farmers and fishermen.
Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan are the five member countries of EAEU.
The development is important as India is looking to diversify its export markets due to high tariffs imposed by the US.
Russia is the top trading partner of India in the bloc, with bilateral trade worth USD 68.72 billion in 2024-25 (exports USD 4.88 billion and imports USD 63.84 billion). The high import numbers are due to a jump in crude oil imports.
The bilateral trade with Armenia, Belarus, Kazakhstan, and Kyrgyzstan was USD 315.18 million, USD 106.69 million, USD 349.48 million, and USD 56.78 million, respectively, in the last fiscal year.
Goyal also informed that there is potential for talks on a trade pact with SACU (Southern African Customs Union). SACU nations include South Africa, Namibia, Botswana, Lesotho and Eswatini. It is the world’s oldest customs union — over a century old.
Discussions are also on for the second phase of a preferential trade agreement with the Mercosur bloc. Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay.
He added that negotiations with Israel will commence soon, virtually for an early harvest trade agreement. India is keen to collaborate with Israel in areas such as agriculture tech, innovation, mobility and services.
On the commencement of FTA talks with Canada, the minister said there is a serious interest on both sides in the agreement.
He said that soon, both sides will meet to kick-start the process.
In a free trade agreement, two countries either eliminate or significantly reduce import duties on the maximum number of goods traded between them.
PTI
