Historic India-EU Trade Agreement Set to Create Monumental Market

German Chancellor Friedrich Merz highlighted the upcoming free trade agreement between India and the European Union as an opportunity to counter protectionism. This agreement, discussed at the World Economic Forum, is expected to create a market for 2 billion people, significantly boosting EU-India trade relations.

In a pivotal moment for global trade, German Chancellor Friedrich Merz on Thursday emphasized the strategic significance of an upcoming free trade agreement between India and the European Union. Speaking at the World Economic Forum Annual Meeting, he framed this development as an opportunity to unite against the rising tides of protectionism and isolationism.

The agreement is poised to set a new benchmark, with European Commission President Ursula von der Leyen referring to it as 'the mother of all deals.' Scheduled for conclusion during the India-EU summit on January 27, this deal will potentially create a market encompassing 2 billion people, thereby covering approximately one-fourth of the global GDP.

Prominent European leaders including European Council President Antonio Costa are set to visit India from January 25 to 27 to partake in the Republic Day celebrations and finalize the negotiations with Indian Prime Minister Narendra Modi. The agreement is anticipated to fortify bilateral trade, which already stood at USD 135 billion in the 2023-24 fiscal year, and enhance overall ties amid ongoing global trade disruptions.

(With inputs from agencies.)