Officials from India and the European Union are expected to announce the successful conclusion of Free Trade Agreement (FTA) negotiations on Tuesday at the India-EU Summit in New Delhi. The decades-old deal is slated for signing later this year after legal reviews. It aims to boost trade in key sectors for both sides.
Negotiations for a Free Trade Agreement between India and the European Union began in 2007 but were abandoned in 2013 due to differences over automobile market access. Commerce Secretary Rajesh Agarwal stated on Monday that official-level talks are wrapping up, with an announcement of successful conclusion expected on Tuesday at the India-EU Summit.
Talks on 21 chapters have been completed. An official said, “After subsuming a few chapters, India and the EU have completed talks on 21 chapters. While the legal scrubbing of the deal would take four to five months, the trade deal will come into effect by early next year after being ratified by the European Parliament.”
The agreement is poised to benefit India's labour-intensive sectors, including marine products, textiles, footwear, and sports goods. India is likely to open its automobile and alcoholic beverage sectors, areas of strong EU interest. Amid US tariffs, such as 50 percent on some goods, Indian exporters, particularly in apparel, face losses. The Apparel Export Promotion Council wrote to Vice President C P Radhakrishnan last week seeking immediate government support.
The deal gains urgency amid shifts in US trade policies and shared challenges with China, where Indian industries face pricing issues in sectors like solar energy. It offers India an opportunity for market diversification in a changing global trade landscape.
