Post by : Meena
Hassan
India and the European Union (EU) are on the brink of finalizing an unprecedented free trade agreement (FTA) that encompasses approximately 25% of the global GDP. Prime Minister Narendra Modi hailed this deal as the "mother of all deals" and stressed the substantial opportunities it will generate for businesses and citizens alike.
While addressing attendees at the Indian Energy Week via video link, PM Modi highlighted that this significant agreement epitomizes robust collaboration between two of the world’s foremost economies. He noted that the pact will be particularly advantageous for India’s manufacturing sectors, including textiles, gems and jewellery, and leather.
Expected to provide a considerable boost to the manufacturing and services sectors, the India-EU trade agreement aligns with India's ongoing trade discussions with the United Kingdom. The pact reflects nearly a third of global trade and underscores a mutual commitment to democracy and the rule of law shared by India and the EU.
Negotiations for this FTA commenced in 2007 but encountered several interruptions over the years. Its conclusion marks a pivotal point in global trade dynamics amidst evolving international relationships. European Commission President Ursula von der Leyen, who was present at India's Republic Day celebrations, also referred to the agreement as the "mother of all trade deals."
The agreement aims to lower tariffs on most consumer and industrial goods traded between India and EU nations. Although some agricultural products may remain excluded, the deal will improve market access for EU car exports, with established export limits.
This landmark pact is anticipated to enhance economic relations, generate employment, and create new opportunities for investment and trade between India and the European Union, thereby reinforcing their strategic alliance.
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