NEW DELHI: Prime Minister Narendra Modi announced that India and the European Union (EU) agreed on the Free Trade Agreement (FTA), assuring that the ‘mother of all deals’ will bring major opportunities for both sides.
“Yesterday a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world,” said Modi during his address on this newly signed FTA. The PM further assured that this deal will be a major boost to the Indian manufacturing sector.
The deal was closed in the presence of European Council President António Costa and European Commission President Ursula von der Leyen, who have come to India as special guests during the Republic Day celebrations.
The India-EU FTA has been signed after nearly two decades. The talks for the FTA initially began in 2007. However, the talks were suspended in 2013 as both sides opted for certain protectionist measures. The negotiations were relaunched in June 2022.
A formal signing is likely later this year after the text clears legal scrutiny.
An Emkay Global Financial Services report estimates the pact could lift India’s exports to the bloc by as much as USD 50 billion by 2031. The agreement is projected to drive a more than 50% jump in India’s exports to the region over the next five years.
The EU currently accounts for about 17% of India’s total exports with India exporting merchandise worthf USD 75.85 billion and imports of USD 60.68 billion, making the EU India’s largest trading partner in goods.