Mr. Piyush Goyal, The Indian Union Minister of Commerce and Industry anticipated political direction to formalize the Free Trade Agreement between the India & EU. They are negotiating an FTA that can be mutually beneficial and make commercial sense in the two regions. During a meeting with a delegation from the European Commission, Goyal specified that while achieving a broad trade deal is the goal, it is also essential to deal with existing issues of concern.
Progress on Negotiations
The negotiations have been held in nine cycles up to now, and the latest cycle was held from September 23 to September 27, 2024. The focus has been primarily on the rules of origin and government procurement. But this has not happened and therefore the next round of discussions is likely to commence in the early part of 2025.
The meeting was presided by Minister of State for Commerce and Industry Jitin Prasada and other officials. It emphasized the growing bilateral trade between the two regions, India and the EU. Speaking in terms of sustainable development, Goyal referred to the CBDR saying that measures should be taken with regard to the development paths of the two economies.
With an economic focus on India, Goyal predicts India’s growth will reach a $35 trillion economy by 2047 compounded at an 8%-9% annual rate. The EU is Indiaโs largest partner for trade in goods. They have fostered $ 137.41 billion of bilateral merchandise trade in 2023- 24. Services trade contributed further by $ 51.45 billion in 2023 indicating the need for a strong FTA.
Strategic Opportunities
According to the EU representatives, the key prospects include a strong connection in supply chain structures and the improvement of market access. EU countries also had concerns over sustainability and climate pledges in the negotiations.
Indiaโs current strategy is to negotiate for better terms with the major partners by diversifying its export destinations. The FTA with the EU has the benefit of enhanced exports necessary to meet Indiaโs export target of $2 trillion by 2030.
Conclusion
The creation of the Trade and Technology Council between India and the EU relations points to a more strategic relationship. This partnership is therefore an alignment of interests in developing ideas, improving access to markets, and building business continuity in supply chains.
By both partnersโ determination to achieve goals and overcome obstacles, the FTA has the potential to change India-EU relations and promote global economic development.
