India and EU Finalize Landmark Free Trade Agreement

India and the EU have finalized a Free Trade Agreement (FTA), marking a significant step in boosting India's exports to the EU, its largest trading partner. The FTA will benefit industries by reducing tariffs, enhancing market access, and diversifying export destinations amidst global tariff tensions.

India and the European Union have reached a milestone with the conclusion of negotiations for a Free Trade Agreement (FTA), announced on Tuesday. This marks the 19th trade deal for India, projected to bolster the country's export potential across the 27-nation bloc.

The FTA is a strategic move to counter high tariffs imposed by the US and to diversify India's trade dependencies, reducing overreliance on China. This agreement will eliminate or significantly reduce import duties, opening up markets for key sectors like technology, pharmaceuticals, and automotive.

In the fiscal year 2024-25, India's trade with the EU reached USD 136.53 billion, affirming the EU's status as India's largest trading partner. The revival of these negotiations began in June 2022, aiming for broader collaboration through additional agreements on investment protection and geographical indications.