India and Russia seek trade diversification and EAEU free trade agreement

India and Russia are working to diversify their bilateral trade and finalize a free trade agreement (FTA) between India and the Eurasian Economic Union (EAEU). During the 27th session of the India-Russia Intergovernmental Commission in Moscow, Russian First Deputy Prime Minister Denis Manturov and Indian External Affairs Minister S. Jaishankar emphasized the need to expand trade beyond traditional fuel and fertilizer supplies.

Bilateral trade turnover increased by 8% in the first half of 2026. Indian Foreign Minister Jaishankar noted that trade has grown more than fourfold since 2021-22, rising from approximately $13 billion to over $60 billion in 2025-26. However, he highlighted that this rapid expansion has widened the trade imbalance, necessitating improvements in market access, the removal of trade barriers, and the strengthening of payment mechanisms.

The two nations are pursuing a bilateral trade target of $100 billion by 2030. Manturov stated that the EAEU-India FTA is currently in an active stage of preparation and will serve as a “new driver of sustainable trade growth.” Discussions also covered cooperation in energy, space, connectivity, and the potential advantages of the Northern Sea Route.