India and the European Union have concluded talks on a Free Trade Agreement (FTA), with an official announcement expected tomorrow. The aim of the agreement is to strengthen economic integration between India and the EU and to promote trade and investment flows.
According to Commerce Minister Rajesh Agrawal, the text of the FTA will undergo a legal cleaning process in the next 5-6 months before being formally signed. The agreement is expected to enter into force sometime next year.
A balanced and forward-looking agreement
Agrawal described the FTA as “balanced, forward-looking” designed to promote mutually beneficial trade and investment and strengthen cooperation across sectors.
The agreement is expected to boost trade and investment between India and EU member states and strengthen economic ties.
EU-India Summit in Delhi
Antonio Costa, President of the European Council, and Ursula von der Leyen, President of the European Commission, will represent the EU at the 16th EU-India Summit in New Delhi, hosted by Prime Minister Narendra Modi.
Leaders are expected to adopt a joint EU-India comprehensive strategic agenda aimed at strengthening strategic cooperation in four key areas: prosperity and sustainability, technology and innovation, security and defence, and connectivity and global issues. The EU-India Security and Defense Partnership is expected to be signed at the summit, bringing tangible cooperation in maritime security, cyber security and counter-terrorism.
“Mother of all trades” about trade
In an interview with Euro News, European Union Trade Commissioner Maros Šefčovič described the long-awaited EU-India free trade agreement as “very close” and called it the “mother of all deals”.
“In some sectors, India has tariffs of up to 150%. And that’s why large parts of the economy have been completely closed to European exporters. Opening up the economy will now be of great benefit,” Šefčovič said.
The deal is expected to create a free trade zone covering roughly 2 billion people and eliminate many of India’s tariffs on European goods, although sensitive sectors will be excluded.
“This is the biggest trade deal ever,” Šefčovič added, noting that around 6,000 European companies already operate in India and trade between the two partners has grown sharply over the past decade.
A security and defense partnership will be signed
High-ranking EU officials, including the Vice-President of the European Commission, Kaja Kallas, highlighted the dynamics of cooperation between the EU and India in the field of security and defence.
“There is a strong momentum for closer cooperation with India and we will seize it. It is a pleasure to be in New Delhi today and an honor to participate in the Republic Day celebrations. As a symbol of our deepening bond, personnel from our EU naval operations, Atalanta and Aspides, are taking part in the parade for the first time. Tomorrow at the summit, we will sign our relationship as concrete results in the field of security and by signing this partnership in the field of defence.” maritime security, cyber security and counter-terrorism,” Kallas wrote on X.
