Historic India-EU FTA Boosts Trade and Innovation

India and the European Union have finalized a landmark Free Trade Agreement, marking a significant milestone in their economic partnership and trade engagement. The FTA promises unprecedented market access, particularly benefiting India's exports and services sectors, while fostering innovation and creating vast opportunities across multiple industries.

Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa jointly announced the conclusion of the India-European Union Free Trade Agreement (India-EU FTA) at the 16th India-EU Summit held in India. This significant announcement marks the culmination of intense negotiations and years of engagement, paving the way for a historic milestone in economic relations.

The European Union, a crucial partner for India, saw bilateral trade exceed USD 136 billion in 2024-25. The FTA promises to strengthen India-EU ties, integrating their economies to create unprecedented opportunities for trade and investment. India's Union Commerce Minister Piyush Goyal lauded this agreement, emphasizing its role in bolstering the 'Make in India' initiative and enhancing India's global competitiveness.

Beyond conventional trade, the India-EU FTA encompasses strategic dimensions, securing market access for over 99% of Indian exports to the EU by trade value. It leverages India's young workforce, unlocking opportunities in sectors like IT, textiles, and automobiles while enhancing rural livelihoods. Moreover, the FTA addresses non-tariff barriers, strengthens regulatory cooperation, and supports financial integration.

(With inputs from agencies.)