Commerce and Industry Minister Piyush Goyal on Friday said the free trade agreement (FTA) with the 27-member European Union, now in its final stages of negotiation, would prove to be the “mother of all trade deals” India has concluded so far.
“I have done seven deals so far- all with developed economies. This one will be the mother of all,” Goyal said during a media briefing.
Since 2014, India has entered into trade agreements with Mauritius, the UAE, the four European Free Trade Association nations (Switzerland, Norway, Iceland and Liechtenstein), and Oman, besides signing an early harvest pact with Australia. Recently, FTAs with New Zealand and UK have also been signed.
The agreement with the EU will be the largest so far, as the bloc consists of 27 advanced economies. EU member states include France, Germany, Spain, Italy, Austria, Belgium, Bulgaria, Finland, Hungary, Ireland, the Netherlands, Portugal, Poland, Denmark and Sweden.
Goyal said bilateral trade between India and the EU is fairly balanced across goods and services, as two sides are not competing with each other, rather trying to unlock significant growth opportunities. He said, that India and the EU are complementary economies and thus it would also be a “super deal” for Indian export-oriented sectors.
European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen will be visiting India from January 25 to 27, and will attend the 77th Republic Day celebrations as the chief guests.
The EU currently accounts for about 17% of India’s total exportswith India exporting merchandise worthf $75.85 billion and imports of $60.68 billion, making the EU India’s largest trading partner in goods.
While the Minister has refused to comment on the exact date of the finalization of the deal, however, sources from the Ministry has previously confirmed that the deal is likely to be finalized by the end of January, with sensitivities of both the sides being kept away.