India-EU FTA: A New Dawn for Trade

India and the European Union have finalized a landmark free trade agreement after over two decades of negotiations. This deal, dubbed the 'mother of all deals', provides extensive duty-free access between India's and the EU's markets, impacting several sectors and facilitating enhanced bilateral trade and services.

India and the European Union have sealed a comprehensive free trade agreement, promising substantial economic benefits for both regions. Announced on Tuesday, the agreement offers duty-free access to an expansive range of domestic sectors like textiles, chemicals, and footwear, while the EU can enter the Indian market for cars and wines with concessional duties.

The deal, deemed the 'mother of all deals', opens up a market of approximately 2 billion people. A large majority of Indian exports, over 93%, will receive zero-duty access in the European Union, enhancing India's trade prospects. Conversely, the EU will eliminate import tariffs on 90% of Indian goods immediately post-implementation.

While the FTA will revolutionize cross-border trade by removing duties on most products, exceptions remain for sectors like dairy and automobiles where specific conditions apply. As the agreement rolls out, both parties anticipate a substantial increase in trade volumes over the next few years.

(With inputs from agencies.)