`EU has untapped trade potential with India, great FTA prospect'

EU is one of India's largest trading and investment partners but it has untapped great trade potential with India, sources said ahead of India-EU virtual summit on Wednesday and noted that the two sides have great potential to develop a comprehensive Foreign Trade Agreement.

EU is one of India's largest trading and investment partners but it has untapped great trade potential with India, sources said ahead of India-EU virtual summit on Wednesday, and noted that the two sides have great potential to develop a comprehensive Foreign Trade Agreement. They said the two sides have great potential to develop trade and economic relations.

The EU sources said the European Union is one of India's largest trading and investment partner despite Brexit and the two countries have great potential to develop trade relations further. India and the EU are expected to hold discussions towards a "balanced and comprehensive FTA" during the summit meeting on Wednesday.

"We have great potential to further develop a comprehensive Foreign Trade Agreement," the source said. The leaders expected to start afresh on the issue which hit a pause button after intense negotiations that started 13 years ago.

EU sources, however, said that there was "a trend in India which is protectionist" and New Delhi has maintained a protectionist stance on the services sector, tariffs". The sources said India is also an important partner to fight environmental issues and laid stress on the need to diversify India- EU relations in energy cooperation to achieve climate neutrality.

They said India and the EU have to work towards securing the peaceful use of nuclear energy.