The India-EU FTA: A Double-Edged Sword for India's Trade and Industry

The Congress raises concerns over the India-EU Free Trade Agreement's implications, emphasizing the lack of exemptions for India's aluminium and steel industries and the potential challenges posed by EU's strict regulations. The deal is significant, marking India's largest trade opening, yet it poses risks for domestic sectors.

The Congress has expressed significant concern following the sealing of the India-EU Free Trade Agreement. They pinpointed the Modi government's 'failure' to secure crucial exemptions for India's aluminium and steel makers from the Carbon Border Adjustment Mechanism and highlighted the potential impact on over 96% of the EU's exports to India.

Congress general secretary Jairam Ramesh highlighted worries about the EU's stringent health and product safety regulations, which will remain relevant for Indian exports even post-FTA. Further unease was directed at India's major export to the EU - refined fuels - especially given its Russian origins, amidst pressures from Washington.

The FTA, concluded after nearly two decades of negotiation, promises duty-free access to 93% of Indian shipments to the EU while making luxury goods imports more affordable. However, concerns about the non-tariff barriers and intellectual property rights in sectors like pharmaceuticals and automobiles persist as Congress scrutinizes the potential risks.