New Delhi: India is exploring a landmark Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), a move that could reshape its trade dynamics and open doors to a $2.6 trillion market. Formed in 2015, the EAEU comprises Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, collectively home to around 185 million people.
The union operates as a single market for goods, services, capital, and labor, much like the European Union — and has seen its GDP grow from $1.6 trillion to $2.6 trillion. Projections suggest an average growth rate of nearly 6% between 2025 and 2030, driven by import substitution, innovation, digital expansion, and growing internal trade that has largely moved away from U.S. dollar dependency.
For India, this FTA offers a strategic opportunity: expanding exports in pharmaceuticals, machinery, and electronics, bypassing U.S. tariffs, and advancing de-dollarization to enhance economic sovereignty. Terms of Reference have already been signed to initiate negotiations, signaling a potential shift in New Delhi’s trade policy towards greater Eurasian integration.
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