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What is the India-EU FTA trade deal? Why it matters for India
What is the India-EU FTA trade deal? Why it matters for India
India-EU FTA trade deal: India and the European Union on Tuesday concluded negotiations on the Free Trade Agreement (FTA). With the agreement now finalised, India becomes the third Asian nation after Japan and South Korea to secure a trade deal with the EU.
India-EU FTA trade deal: India and the European Union (EU) concluded negotiations on their Free Trade Agreement (FTA) on January 27, marking a major milestone in bilateral trade relations.
India-EU FTA trade deal represents a historic agreement finalized on January 27, that cuts duties on 90-97 percent of products, expands Euro 180 billion in two-way commerce, and opens EU markets wider to Indian sectors such as textiles, jewelry, and IT services, alongside lowering costs for European imports like vehicles, beverages, and equipment in India.
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Following the successful completion of talks, the pact will be formally signed after a detailed legal review of the text, a process expected to take five to six months.
"Formal deal signing to be done after legal scrubbing. The deal will be balanced, forward-looking and help with better economic integration with the EU. Deal will propel trade and investment between both sides. The deal will enter into force sometime next year. Legal scrubbing of text to take 5-6 months, formal signing to be done post that," ANI quoted Commerce Secretary Rajesh Agrawal as saying.
The trade agreement, which India has called the "mother of all deals," covers Euro180 billion in bilateral trade and represents 25 percent of global GDP.
Through this deal, India and the European Union will slash tariffs on 90-97 percent of goods. India specifically will eliminate or reduce duties on 96.6 percent of EU exports.
The agreement gives India preferential access to European markets across 97 percent of tariff lines, covering 99.5 percent of trade value.
The India-EU trade agreement will lower or remove tariffs on more than 90 percent of European goods, including automobiles exported to India.
Import duties on European beer will be reduced to 50 percent, while tariffs on chemicals, aircraft, and spacecraft will be eliminated for almost all products.
The trade pact brings multiple benefits for Indian consumers and businesses by reducing costs and creating new opportunities.
The deal will lower prices on European wines and spirits, olive oil, chocolates, biscuits, pastas, breads, fruit juices, non-alcoholic beer, and fruits like kiwis and pears.
The agreement will reduce prices on European cars, making them more accessible to Indian consumers.
It will make pharmaceuticals and medical equipment affordable.
Machinery and chemicals will also become more affordable, benefiting industries and manufacturing sectors.
The deal will cut manufacturing costs for gadgets, phones, and steel products by reducing input expenses for Indian manufacturers.
The trade agreement will boost Indian exports in textiles, leather, gems and jewelry, engineering goods, marine products, and fruits.
This export growth will create jobs in labor-intensive sectors across the country.
Service sectors like information technology and education will gain better access to European Union markets, opening new opportunities for Indian professionals and companies.
By eliminating tariffs on such a wide range of products and services, the India-EU FTA creates a more integrated economic relationship between India and the 27-nation European bloc.
For Indian consumers, this means access to European products at lower prices. For Indian businesses, it means expanded market access to one of the world's largest economic zones. For workers, it means new employment opportunities in export-oriented industries and service sectors.
Prime Minister Narendra Modi on Tuesday described the India-European Union Free Trade Agreement as a historic milestone and a decisive chapter in the relations between the two major democratic powers.
Calling the India-European Union Free Trade Agreement (FTA) the largest trade agreement in India's history, Prime Minister Modi said it is not just a trade agreement, but a blueprint for shared prosperity.
Source: ZeeNews
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