India-EU Free Trade Agreement: A Game-Changer Deal, Says Piyush Goyal
New Delhi- India’s Commerce and Industry Minister Piyush Goyal expressed optimism on Friday about the impending free trade agreement between India and the European Union (EU), labeling it as the “mother of all deals.”
The negotiations for this significant agreement are reaching their final stages, with an expected announcement on January 27.
During a state visit from January 25-27, the President of the European Council, Antonio Luis Santos da Costa, and the President of the European Commission, Ursula von der Leyen, will be in India as chief guests for the 77th Republic Day celebrations.
Goyal emphasized the mutual benefits of the proposed India-EU trade pact, describing it as a “super deal” particularly advantageous for Indian export sectors.
Under the leadership of the NDA government, India has successfully concluded seven trade agreements since 2014, including pacts with Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc, and Mauritius.
Goyal highlighted the balanced nature of bilateral trade in goods and services between India and the EU, emphasizing the potential for significant growth opportunities.
He stressed that the agreement with the EU, comprising 27 developed nations, will be a milestone for India, fostering strategic partnerships with countries like France, Germany, Spain, and Italy.
Commerce Secretary Rajesh Agrawal confirmed that India and the EU are nearing the conclusion of negotiations, aiming to address remaining issues for a formal announcement during the upcoming visit of top EU leaders.
This trade pact holds particular significance amidst global trade disruptions caused by high tariffs imposed by the US. India’s exporters are expected to benefit from diversifying their shipments and reducing reliance on countries like China.
The EU market represents a substantial portion of India’s exports, accounting for around 17% of the total. In return, the EU exports to India constitute 9% of its overseas shipments.
In the fiscal year 2024-25, India’s bilateral trade in goods with the EU totaled USD 136.53 billion, making the EU India’s largest goods trading partner.
With a GDP exceeding USD 20 trillion and a population of over 450 million, the EU plays a crucial role in global trade, exporting about USD 2.9 trillion annually.
India, with a population of 1.4 billion, has significantly contributed to global trade, exporting USD 437 billion in goods and USD 387.5 billion in services, with imports totaling USD 720 billion for goods and USD 195 billion for services in 2024-25.
