VOI World/ Naman Nitin Khanna
India, before the year-end, is aiming to finalize a major free trade agreement with the European Union (EU). Having resumed talks, the India-EU FTA negotiations for a comprehensive trade deal/agreement continue. On Monday, December 8, Union Minister of Commerce & Industry, Piyush Goyal, met with EU Trade and Economic Security Commissioner, Maroš Šefčovič. The 2-day negotiation rounds continue to take place in Delhi for the pact which remains in a crucial, possibly final, stage.
After being stalled in 2013, trade talks resumed in June 2022, and have consistently/frequently taken place since then. However, there exists immense possibility that the trade pact be confirmed, with all concerns resolved, before the end of 2025. Šefčovič noted that “a commercially meaningful FTA would unlock enormous potential.” At the same time, both sides have reaffirmed and emphasized strong political commitment for final discussions and concluding negotiations to finalize a deal which is of strategic importance to both India and the EU. Goyal noted on X (formerly known as Twitter) that the meeting, “explored ways to resolve the issues towards a mutually beneficial India-EU FTA.” The EU team also consists of Sabine Weyand, Director General of Trade, and Ambassador Hervé Delphin.
The EU has been one of India’s most major and dominant economic partners, with bilateral trade in goods amounting to USD 136.53 billion. The EU, receives 17 percent of India’s total exports. If the deal finalizes, Indian good exports, such as, pharma, steel, petroleum, and machinery stand to become more competitive. The FTA negotiations cover 23 chapters, including, investment, customs, trade facilitation, government procurement, dispute settlement, and intellectual property rights.
Despite the commitment, concerns persist. The EU continues to hope for significant duty cuts in automobiles and medical devices, along with a tax reduction in spirits and poultry. While India continues to aim for duty-free access to labour-intensive goods and emerging sectors. The EU and India together are representative of 25 percent of the world’s total GDP and population, the two also share impressive people to people ties with more than 21,000 skilled Indian professionals availing the EU’s Blue Card Scheme. While India-EU FTA negotiations continue, if the pact finalizes the Indian economy awaits a major boost.
