NEW DELHI: Prime Minister Narendra Modi on Tuesday described the Free Trade Agreement (FTA) between India and the European Union (EU) as a "blueprint for shared prosperity," while also stressing that it would provide stability to the world order.
Speaking at a joint press meet with European Council President Antonio Costa and European Commission President Ursula von der Leyen after the conclusion of negotiations for the India-EU free trade agreement, Modi said, “Today, India has signed the biggest FTA in its history. On January 27, India is getting into an FTA with 27 countries of the European Union.”
"This is not just a trade agreement. This is a new blueprint for shared prosperity," he added.
Stating that the agreement is the biggest such deal in India’s history, Modi added that it would help stabilise the global environment.
"India-EU will provide stability to the world order...India-EU cooperation is a partnership for global good," he said.
He further said that the deal will not only boost the manufacturing and agricultural sectors, but also enhance the growth in India’s service sector.
As per the agreement, 99 per cent of Indian exports by value, 96.6 per cent of EU goods exports will have easier access to each other's territory.
He asserted that this deal will also help Indian farmers and manufacturers better tap the European market and strengthen the ties between the two largest global democracies.
Commerce Minister Piyush Goyal also seconded his thoughts and assured that this deal will unlock vast opportunities for Indian exporters to venture into the $20 trillion EU market.
However, keeping in mind the sensitivities of certain sectors of India, rural livelihoods have also been secured while opening up potential to scale in the high-value EU market. Although the government assured that measures are in place to ensure that “care (is) being taken to shield sensitive sectors”
“This partnership forged between the fourth and the second-largest economies, accounting for one-third of global trade, will create unprecedented trade and investment opportunities benefiting businesses, MSMEs, women, youth, artisans, workers, students, skilled professionals, fisherfolk, farmers, and exporters, among others,” Goyal stated in his social media post.
Costa said the India-EU FTA is the most ambitious agreement ever concluded for a market of 2 billion people.
He also said the India-EU summit gives a clear message to the world that India and the EU stand together as reliable partners.
Costa also said that "we count on you (Modi) to help create conditions for peace in Ukraine through dialogue, diplomacy."
Leyen said the India-Europe partnership will reduce strategic dependency at a time when global trade is being increasingly weaponised.
"We are delivering security for our people in an increasingly insecure world," she said, adding that India has risen, and Europe is truly glad about it.
Both sides adopted “Towards 2030: India–EU Joint Comprehensive Strategic Agenda” to elevate the strategic cooperation between the two sides.
India-EU Joint Statement issued clarified that the Joint Comprehensive Strategic Agenda is aimed at accelerating progress across five key pillars: prosperity and sustainability, technology and innovation, security and defence, connectivity and global challenges, as well as enabling factors such as skills, mobility, business and people-to-people ties.
While the deal has been announced, processes like legal scrubbing, signing and most importantly ratification by EU member states may take another year.
