India-eaeu trade deal: Recently, US President Donald Trump called India a “dead economy” and also announced to increase the US tariff to 50 percent. After this statement, the Indo-US trade talks have almost come to a standstill. Now India has started a new business talks with Russian -led Eurasian Economic Union (EAEU), taking retaliation.

Russia-India partnership new pace

On Wednesday, the Term of Refrains were signed between India and EAEU regarding the Free Trade Agreement (FTA) in Moscow. On behalf of India, Additional Secretary in the Department of Commerce, Ajay Bhadu and EEC’s Trade and Policy Department Deputy Director Mikhail Cherakov signed the agreement. The dialogue began at a time when New Delhi is strategically bending towards China, Russia and Brazil amid American sanctions.

Current reply to America

After negotiating with America, Prime Minister Narendra Modi discussed the phone with Brazilian President Lula da Silva and Russia’s Prime Minister Vladimir Putin. It is expected that at the end of the month he will also meet Chinese President Xi Jinping. The message is clear that India no longer wants to be completely dependent on America.

What is a big challenge?

India and EAEU had a trade of $ 69 billion in 2024, which is 7 percent higher than in 2023. Indian exporters can get new markets with this FTA with this $ 6.5 trillion dollar economy. This will especially benefit the textile industry and pharma sector.

However, challenges are also no less. India’s imports from Russia have increased rapidly, but exports have been relatively low. In 2019, where India’s export to Russia was $ 2.39 billion, it has increased to only $ 4.88 billion in 2025. At the same time, India’s import from Russia has increased considerably due to dependence on oil and now it has reached 35–40 percent. The result is that the trade deficit between the two countries is more than $ 60 billion.

Overall, India has responded directly to Trump’s “Dead Economy” statement on the economic front directly. If the free trade agreement with EAEU comes in early implementation, then India will get a lot of help in getting out of American pressure and finding new markets.

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External Affairs Minister S Jaishankar is on a tour of Russia. During this time, he has expressed concern about the trade imbalance between India and Russia. ,times of India, According to the report of India’s trade deficit has reached $ 58.9 billion, which has already increased about nine times. The Foreign Minister said that work should be done immediately to reduce this deficit.

External Affairs Minister Jaishankar and Russian Foreign Minister Sergei Lavrov will hold a meeting on Thursday (August 21). Earlier, Russia said that logistic, banking and financial chain will have to be promoted. Both countries will benefit from mutual agreement.

What did Jaishankar say on business with Russia

On the other hand, External Affairs Minister Jaishankar expressed concern over the trade with Russia. He said, “Trade between India and Russia has increased five times to $ 68 billion in 2021 to $ 68 billion in 2021, but along with this trade imbalance has also increased. It was earlier $ 6.6 billion, which is now to $ 58.9 billion. ”

He suggested to balance the trade and said, “It is our priority to remove the problems of tariffs and tariffs without tariffs. This will speed up the import-export process and save the time of traders. Their cost will also be saved. ” Jaishankar said that India and Russia’s trade is a target to reach $ 100 billion by 2030.

Trump’s relief to China, India’s increased tariff

The US had first imposed 25 percent tariff on India, but then increased to 50 percent. Trump had warned India several times to increase the tariff. They have trouble buying oil from Russia in India. Although China and America themselves buy oil from Russia, Trump gave relief to China. Despite this, India did not leave Russia.