India negotiates Free Trade Agreement with Eurasian Economic Union

India is currently negotiating a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU) to reduce trade barriers and increase market access. Experts suggest the agreement could strengthen economic ties across various Indian sectors and regions.

Potential beneficiaries include Mumbai in the diamond, pharmaceutical, and logistics sectors, as well as Ahmedabad and Surat in textiles, chemicals, and engineering. Other cities like Chennai, Bengaluru, Hyderabad, and Visakhapatnam may see growth in IT, automobiles, and industrial exports. Additionally, sectors such as agriculture, processed foods, and machinery are expected to gain momentum.

The FTA is viewed as a strategic move to diversify trade and supply chains toward nations such as Russia, Kazakhstan, and Belarus, potentially reducing India’s economic dependence on Western economies like the US and the EU. Micro, small, and medium enterprises (MSMEs) are also expected to be major beneficiaries of the deal.