News

Economy

India–Russia Free Trade Agreement On The Cards

• By  Textile Excellence
• January 03, 2026

India and Russia may soon move closer to a free trade agreement (FTA), with negotiations underway between India and the Eurasian Economic Union (EAEU), a Russia-led bloc that also includes Armenia, Belarus, Kazakhstan and Kyrgyzstan. The proposed agreement is expected to significantly expand trade flows between India and the five-member grouping.

Russian Deputy Prime Minister Alexey Overchuk has confirmed that discussions are progressing, with the first round of meetings already completed. He said Russia is keen to see Indian products reach its markets in much larger volumes, describing India as a fast-growing economy and a close, trusted partner. According to Overchuk, the talks are aimed at translating this relationship into concrete trade agreements.

Commerce and Industry Minister Piyush Goyal had earlier announced that India has formally launched negotiations for an FTA with the EAEU. An 18-month roadmap has been drawn up as part of the process, with a focus on opening new markets for Indian exporters, particularly micro, small and medium enterprises (MSMEs), farmers and fishermen.

India and Russia share a long-standing strategic partnership that dates back decades. Since the signing of the Strategic Partnership Declaration in 2000, bilateral cooperation has expanded across defence, energy, trade, science and technology, and people-to-people ties. In 2010, the relationship was elevated to a “Special and Privileged Strategic Partnership.”

Trade and economic cooperation is guided through the India–Russia Inter-Governmental Commission on Trade, Economic, Scientific and Cultural Cooperation (IRIGC-TEC). At its 26th meeting in Moscow in August 2025, both sides discussed reducing tariff and non-tariff barriers, improving logistics and connectivity, easing payment mechanisms, and accelerating the India–EAEU FTA.

India and Russia are targeting US$ 100 billion in bilateral trade by 2030, along with US$ 50 billion in mutual investments. Trade touched a record US$ 68.7 billion in FY 2024–25, driven largely by energy imports, while Indian exports included pharmaceuticals, chemicals, steel and marine products.

Commerce and Industry Minister Piyush Goyal had earlier announced that India has formally launched negotiations for an FTA with the EAEU. An 18-month roadmap has been drawn up as part of the process, with a focus on opening new markets for Indian exporters, particularly micro, small and medium enterprises (MSMEs), farmers and fishermen.