According to the Ministry of External Affairs (MEA), negotiations between India and the European Union are moving forward rapidly, bringing the two countries closer to finalizing a Free Trade Agreement (FTA). After European Commission President Ursula von der Leyen recently visited India, Tanmaya Lal, the MEA’s Secretary (West), expressed hope that the agreement will be finalized soon.
Von der Leyen and Indian Prime Minister Narendra Modi stressed the significance of strengthening trade and economic ties between the two countries during this visit, giving their respective negotiating teams instructions to complete the FTA within the year.
After earlier discussions broke down in 2013, the FTA negotiations have been going on since 2021. The agreement intends to guarantee the protection of geographical indications, open up markets for services and public procurement, and eliminate trade barriers.
It also aims to establish enforceable trade and sustainable development regulations as well as a stable investment climate. Despite advancements, the negotiations have encountered major roadblocks in sectors like automobiles, drugs, and agriculture.
With goods worth €124 billion in 2023, the EU is India’s biggest trading partner. With 2.2% of the EU’s overall goods trade, India ranks as the ninth-largest trading partner.
Both parties view the FTA as essential, especially in light of growing trade tensions and global protectionism. It is anticipated to reduce economic risks related to geopolitical tensions and would be the biggest deal of its kind globally.
The 11th round of talks is one of the upcoming steps in the negotiations, which are anticipated to get more intense in light of the recent reciprocal tariffs that the United States imposed on both the EU and India.
In line with their mutual objectives of collaboration and economic integration, the agreement’s successful completion would enhance bilateral trade as well as the strategic alliance between India and the EU.
