Post by : Meena Ariff

India and the European Union (EU) are on the verge of finalizing a historic free trade agreement (FTA) that covers about 25 percent of the world’s GDP. Prime Minister Narendra Modi praised the deal, calling it the "mother of all deals" and highlighting the significant opportunities it will create for businesses and people on both sides.

Speaking virtually at the Indian Energy Week, PM Modi emphasized that this landmark agreement symbolizes strong cooperation between two of the world’s largest economies. He pointed out that the pact will particularly benefit India’s manufacturing sectors such as textiles, gems and jewellery, and leather goods.

The India-EU trade pact is expected to significantly boost the manufacturing sector and support services, complementing India's ongoing trade agreement with the United Kingdom. The deal represents nearly one-third of global trade and underlines a shared commitment to democracy and rule of law between India and the EU.

Negotiations for this FTA began in 2007 but faced multiple pauses over the years. Its conclusion marks a new chapter in global trade dynamics amid shifting international alignments. European Commission President Ursula von der Leyen, who recently attended India’s Republic Day celebrations, also described the deal as the "mother of all trade deals."

The agreement is set to reduce tariffs on most consumer and industrial goods traded between India and EU countries. While some agricultural products are expected to remain excluded, the deal offers enhanced market access for EU car exports, with a defined export cap in place.

This historic pact is expected to deepen economic ties, create jobs, and open new avenues for investment and trade between India and the European Union, further strengthening their strategic partnership.

#Global News #World News #Trade