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India-EU FTA: Why António Costa calls it an ‘important geopolitical stabiliser’
India and the European Union are set to unveil what has been described as the “mother of all deals” on Tuesday, following the successful conclusion of lengthy negotiations. Together, India and the EU account for nearly one-fifth of global trade and about a quarter of the world's population, underscoring the partnership's rising economic and strategic significance.
India and the EU maintain a close partnership focused on advancing economic growth, upholding a rules-based international order and promoting sustainable development, with trade and investment forming the core of their relationship.
Here's what European Council President said
In an exclusive interview with Hindustan Times, European Council President António Costa said it's essential that the EU and India become closer partners.“In our multi-polar world, it's essential that the EU and India become closer and closer partners because we can together be strong providers of stability, protectability and reliability in international relations and to protect our international rules-based order,” Costa added.
Our trade agreement, I think, is a very important geopolitical stabiliser and a showcase of how it's possible to protect international rules-based trade, Costa told Hindustan Times.
In addition to advancing the free trade agreement (FTA), both sides are expected to roll out a defence framework pact and announce a strategic agenda, ANI reported.
Negotiations on the FTA were initially launched in 2007 but were paused in 2013 due to differences in ambition, before being revived in June 2022.
India and the EU are also examining the possibility of concluding a Security of Information Agreement (SOIA) and a mobility pact. Agreements in other sectors are anticipated, while discussions are also expected to cover the Russia-Ukraine conflict and developments in West Asia.
“It is the most important trade agreement ever signed by the EU. This is a very important instrument to stabilise trade relations around the world,” Costa told Hindustan Times.
It's coming at a very important moment and sending a very important political message to the world that India and the EU believe more in trade agreements than in tariffs, Costa told Hindustan Times.
India-EU relations
India and the European Union are poised to deepen their strategic ties—first established in 2004—through the signing of a Security and Defence Partnership (SDP), which will examine ways for India to take part in European defence initiatives.At the 16th India-EU Summit today, Prime Minister Narendra Modi is scheduled to hold both restricted and delegation-level talks with European Commission President Ursula von der Leyen and European Council President Antonio Costa.
An India-EU Business Forum will also be held on the sidelines of the summit.
Discussions are expected to centre on trade, defence and security cooperation, climate action, critical technologies, and strengthening the rules-based global order.
In trade in goods, the EU is India's second-largest trading partner, right after China and ahead of the United States, accounting for 11.5 per cent of India's total goods trade.
As per the official data, in 2024, EU-India trade in goods was valued at over Euro 120 billion. This included Euro 71.4 billion worth of EU imports from India and Euro 48.8 billion in EU exports to India.
Over the last decade, bilateral trade in goods has doubled. During this period, EU imports from India grew by 140 per cent, while EU exports to India increased by 58 per cent, showing the steady expansion of commercial ties.
The main goods exported by the EU to India include machinery and appliances, transport equipment and chemicals. On the other hand, the EU primarily imports machinery and appliances, chemicals and fuels from India.
India's key services exports to the EU were other business services, telecommunication and IT, and transportation services. Imports included intellectual property services, telecommunication and IT.
(With inputs from ANI, HT)
Source: LiveMint
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