India and the EU are accelerating efforts to finalize a free trade agreement (FTA) by year-end. Discussions held on March 1, 2025, focused on enhancing economic ties, with the two sides scheduled to continue negotiations in Brussels from March 10-14. The FTA aims to boost bilateral trade, which reached $137.41 billion in 2023-24 and addresses critical issues like duty reductions and data security for India’s IT sector.
India and the European Union (EU) are intensifying their efforts to finalize a free trade agreement (FTA) ahead of the year-end deadline. On March 1, 2025, discussions between Indian Commerce and Industry Minister Piyush Goyal and EU Commissioner for Trade and Economic Security Maros Sefcovic took place in Mumbai, aiming for a balanced and mutually advantageous deal.
During the meeting, Minister Goyal emphasized the importance of enhancing economic collaboration, stating, “Our discussions focused on accelerating efforts towards a balanced and mutually beneficial free trade agreement.” This partnership is expected to solidify economic ties between India and the EU amidst growing trade uncertainties, particularly concerning U.S. tariffs.
Prime Minister Narendra Modi and European Commission President Ursula von der Leyen recently reaffirmed their commitment to the FTA, expressing intentions to finalize the agreement by year’s end. Negotiations will continue with the tenth round scheduled from March 10-14 in Brussels.
The renewed talks, which resumed in June 2022 after an eight-year hiatus due to market access disagreements, aim to address key issues such as significant duty reductions and improved intellectual property protections. A successful agreement would enhance the competitiveness of Indian exports like pharmaceuticals and electrical machinery in the European market.
India is also advocating for data security status for its IT sector to facilitate the flow of sensitive information, which is critical for its digital economy. As of 2023-24, India’s bilateral trade with the EU reached $137.41 billion, marking the EU as India’s largest trading partner in goods.
Moreover, the bilateral trade in services was estimated at $51.45 billion in 2023. The FTA negotiations also encompass an investment protection agreement and a geographical indications (GI) arrangement, aiming to bolster investments from the EU, which currently values at over $117 billion in India.
In summary, the ongoing FTA discussions signify a crucial step towards strengthening economic relations between India and the EU, amid evolving global trade dynamics. The anticipated agreement holds the potential not only to enhance bilateral trade but also to foster investment opportunities, furthering both economies’ growth.
In conclusion, the intensified discussions between India and the EU to finalize a free trade agreement underscore the strategic importance of their economic partnership. With key negotiations on the horizon, both sides are poised to enhance trade relations significantly, particularly in light of the growing challenges posed by external trade policies. The successful conclusion of this agreement could yield substantial benefits for both economies.
Original Source: www.thehindu.com
