During the World Economic Forum, European Commission President Ursula von der Leyen voiced optimism about the upcoming India-Europe Free Trade Agreement (FTA), pointing out that Europe is diversifying its markets in response to U.S. tariff concerns and changing global economic conditions.
She pointed out that this deal might open up a market with 2 billion people, or over a quarter of the world’s GDP, and that it would be a big chance for Europe to interact with rapidly expanding economic hubs.
Following India’s Republic Day celebrations, which coincide with visits by prominent EU leaders, the FTA announcement is anticipated on January 27.
During the next summit, India and the EU hope to complete the FTA negotiations and create a document that will be processed legally and ratified by the appropriate EU bodies. A mobility deal for Indian professionals and a security and defence alliance are also scheduled to be signed in addition to the trade agreement.
With goods commerce exceeding $135 billion in FY24, the trade agreement is positioned as India’s largest and encourages improvements in trade with the EU, India’s top trading partner.
Despite continued talks on delicate topics, such as the EU’s Carbon Border Adjustment Mechanism, the FTA is expected to enable increased market access. As discussions draw to a close, India is pushing for zero-duty access for a number of labour-intensive industries, including textiles and handicrafts, according to Commerce Minister Piyush Goyal.
