India-EU Trade Pact: A Market of Two Billion

A proposed trade deal between India and the European Union is set to signal global businesses about India's commitment to fair trade. The agreement, involving the world's fourth and second largest economies, aims to foster open and rule-based trading, with significant opportunities for investment and industry growth.

The anticipated trade agreement between India and the European Union is poised to convey India's dedication to openness and fair trade to the world, according to sources on Tuesday. Leaders from India and the EU are expected to soon announce the conclusion of negotiations for this significant deal connecting a market of two billion people.

The India-EU free trade agreement aims to establish an open, fair, and rule-based trading environment, indicating New Delhi's commitment to these values. Prime Minister Narendra Modi recently hosted European Commission President Ursula von der Leyen and European Council President Antonio Costa for talks amid global trade disruptions triggered by U.S. trade policies.

For India, the EU represents its second largest export market after the U.S. The agreement is anticipated to bring notable benefits to industries like textiles, gems, and leather. Meanwhile, the EU gains access to a growing market, with potential advantages in sectors with historically high tariffs. Talks will continue on sensitive issues like carbon tariffs.

(With inputs from agencies.)