India signs Terms of Reference for trade deal with Russia and others

India and the Eurasian Economic Union (EAEU), comprising Russia, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic, on Wednesday (August 20, 2025) signed the Terms of Reference (ToR) to launch negotiations on a Free Trade Agreement (FTA), the Indian government announced.

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This comes amid pressure from the U.S. — in the form of additional tariffs on imports from India — to reduce its economic ties with Russia.

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The ToR were signed by Ajay Bhadoo, Additional Secretary in the Department of Commerce in the Government of India and Mikhail Cherekaev, Deputy Director in the Trade Policy Department in the Eurasian Economic Commission (EEC).

“Both sides noted the growing trade turnover between India and the EAEU, which stood at $69 billion in 2024, registering a 7% increase over 2023,” the Ministry of Commerce and Industry said in a release. 

“With a combined GDP of $6.5 trillion, the proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to Micro, Small and Medium Enterprises (MSMEs),” it added.

The Ministry added that both sides of the agreement reaffirmed their commitment to an “early conclusion” of the FTA and to “building a long-term institutional framework for trade cooperation”.