The India-European Union free trade agreement (FTA) could come into force in the next four to five months, Commerce and Industry Minister Piyush Goyal said on Thursday, urging Indian and German businesses to prepare to tap the opportunities once the pact becomes operational.
Goyal, who is leading a 100-member business delegation to Germany, said the agreement, whose negotiations were concluded in January, would move rapidly towards signing. He expressed hope that it would be signed before the end of this year.
“It (the agreement) will move very rapidly towards signature. Closure was announced on January 27 this year... after going through the process of (EU) Parliament, entire 27 nations have unanimously supported,” he said.
“I would not be surprised if... (in the) next four or five months, it will be operational. Which is why such a large business delegation has accompanied me,” he added.
The minister urged businesses on both sides to begin exchanging product samples, discussing quality requirements and pricing, and identifying potential customers and partners so they could maximise the benefits of the agreement once it comes into effect.
Addressing an event here, Goyal also called for an ambitious bilateral trade target of 310 billion euros between India and Germany, against the current level of around 31 billion euros.
“An eminent mathematician in India invented the word zero... it was invented by Aryabhata in India. We have 31 billion euros (bilateral trade at present)... if we were to be able to add a zero to that, make it three hundred and ten (310), how would that sound?” he said.
He said the target would require businesses to identify sectors where the two countries could complement each other's strengths, develop concrete plans and deepen cooperation.
Goyal said Germany's strengths in precision engineering, technical skills and quality could complement India's infrastructure, digital capabilities and skilled workforce. He also called for greater collaboration in apprenticeship and skilling programmes, green transition and emerging technologies.
The India-EU FTA negotiations, which continued for nearly 20 years, were concluded in January this year. Under the agreement, 93% of Indian shipments will enjoy duty-free access to the 27-nation bloc, while imports of luxury cars and wines from the EU will become less expensive.
The minister said closer economic ties would help both countries navigate global uncertainty, adding that economic security and trusted partnerships were becoming increasingly important in the changing global trade environment.
“We need to have open borders, but we need to have economic security where both can work together,” he said, adding that trust was the hardest currency in the present global trade environment.