India’s proposed trade agreement with the Eurasian Economic Union (EAEU) is expected to focus largely on goods and may exclude the services sector, according to people familiar with the discussions.
The EAEU—comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan—has been exploring the possibility of a free trade agreement (FTA) with India to boost bilateral trade and investment. However, officials indicated that differences in regulatory frameworks and limited complementarities have made services a challenging area for negotiations at this stage.
The proposed agreement is likely to concentrate on tariff reductions and improved market access for goods, particularly in sectors such as pharmaceuticals, engineering products, chemicals, textiles and agricultural commodities. India is also seeking better access for its manufactured goods, while EAEU members are keen on expanding exports of energy, minerals and fertilisers.
Services trade—an area of strong interest for India, especially information technology, professional services and mobility of skilled workers—is expected to be kept outside the initial agreement. Officials said this would help fast-track negotiations and allow both sides to secure early gains, while leaving room to consider services at a later stage through a separate arrangement or an expanded pact.
Bilateral trade between India and the EAEU has grown steadily in recent years, driven largely by energy imports from Russia. Policymakers believe a goods-focused trade agreement could further diversify trade baskets and reduce dependence on a limited set of commodities.
Negotiations are still at a preliminary stage, and the final scope of the agreement will depend on consensus among all EAEU member states and India’s broader trade strategy.
