India-EU: Paving the Path for Trade Transformation

India and the EU are in the final stages of negotiating a Free Trade Agreement, projected to boost mutual exports and economic ties. The FTA aims to lessen tariffs, open markets, and diversify trade partnerships for both regions, enhancing competitiveness and reducing reliance on China.

India and the European Union are nearing the conclusion of Free Trade Agreement (FTA) negotiations, anticipated to become India's 19th such pact. This agreement is poised to enhance India's exports significantly to the 27-nation bloc, diversifying trade amid global economic shifts.

Historically, since 2014, India has successfully finalized trade agreements with multiple nations including Mauritius and Australia. The impending FTA with the EU is particularly important as it aims to tackle steep tariffs these exports face, currently standing at 50% from the US, and reduce market dependency on China.

The FTA will primarily benefit sectors like technology, automobiles, and textiles by lowering import duties, thus making Indian exports more attractive and competitive. EU-exporters will gain increased access to the Indian market, particularly sectors such as chemicals and machinery.

(With inputs from agencies.)