Prime Highlights
- Commerce Minister Piyush Goyal confirmed that the India-EU FTA is set to be signed by December and will come into effect in February or March next year.
- Nearly 93 per cent of Indian exports to the EU are expected to receive duty-free access under the agreement.
Key Facts
- The European Union is a 27-member economic and political bloc, making it one of the world’s largest single markets and a significant trade partner for India.
- India is currently in simultaneous trade discussions with three major global partners, the EU, the United States, and Canada, signalling a broad push to expand its international trade footprint.
Background
India and the European Union are moving closer to finalising their long-awaited free trade agreement (FTA), with Commerce and Industry Minister Piyush Goyal confirming the deal is on track to be signed by December and take effect in February or March next year.
Goyal announced at an event for chartered accountants in Mumbai in the third week of June. He said the agreement would open nearly the entire European market to Indian businesses at almost zero duty, marking a significant step forward for Indian exporters.
Under the proposed deal, nearly 93 per cent of India’s exports to the EU are expected to receive duty-free access. This is set to benefit a wide range of sectors, from manufacturing to services. On the other side, certain European goods, including premium cars and wines, are likely to become more affordable in India as import duties come down.
The two sides had concluded negotiations for the pact in late January, paving the way for the formal signing process.
Goyal also revealed that US Trade Representative Jamieson Greer is scheduled to travel to India this week to discuss a separate bilateral trade agreement.
On the Canada front, Goyal said trade talks are also making progress. He noted that at the recent G7 Summit, Canadian Prime Minister Mark Carney expressed interest in wrapping up the proposed Comprehensive Economic Partnership Agreement (CEPA) with India within the year.
India appears to be actively pushing to close multiple trade deals on the global stage within a tight timeline.
