India-EU Trade Pact Promises Market Surge

The India-EU free trade pact, hailed as the 'mother of all deals,' promises economic growth for India by offering lower tariffs and improved market access. Concluded after two decades, the agreement will benefit India's manufacturing and export sectors, while easing costs for imports from the EU.

The recently announced India-EU free trade pact is set to significantly boost India's economy by reducing tariffs and enhancing market access, according to Moody's Ratings. This landmark agreement is expected to attract foreign investment, bolster manufacturing, and enhance the competitiveness of Indian exports.

Described as the 'mother of all deals,' the pact was concluded after two decades of negotiations and grants 93 percent of Indian goods duty-free access to the European Union's 27-member bloc. In return, the EU will enjoy easier entry for luxury cars and wines into the Indian market, significantly lowering their costs.

Experts suggest that the broader benefits of this agreement hinge on further improvements in business regulations. The deal presents a mixed bag for local manufacturers, introducing new competition from European brands while opening up vast opportunities for trade expansion, particularly in labor-intensive sectors.

(With inputs from agencies.)