With 'mother of all deals' in bag, Goyal says she will be compassionate, fair to all 28 children

The trade agreement between India and the EU is likely to double the countrys exports to Europe in five years, and this mother will be compassionate and loving, ensuring that all her 28 children gain from the pact, Commerce and Industry Minister Piyush Goyal said on Saturday.

The trade agreement between India and the EU is likely to double the country's exports to Europe in five years, and this ''mother'' will be ''compassionate and loving'', ensuring that all her 28 children gain from the pact, Commerce and Industry Minister Piyush Goyal said on Saturday. The two sides announced the conclusion of negotiations for the pact on January 27. It is likely to be implemented this year itself, creating a free market of 2 billion people in India and 27 European Union countries. The free trade agreement has been widely described at top levels as the ''mother of all deals''. Asked if the mother will be strict or lenient, Goyal said: ''Neither... This mother is going to be compassionate, this mother is going to be loving, and this mother is going to make sure that both her children and, for that matter, the 27 nations of Europe and India, all 28 children will enjoy the fruits of this free trade agreement''. India already has a trade surplus in exports of both goods and services to the European Union, he added. Now, with 99 per cent of India's exports set to get duty-free access from day one of the implementation of the pact, the country's outbound shipments are likely to double in five years, Goyal told PTI Videos in an interview. The duty-free entry for domestic firms in Europe will give a big fillip to many sectors, such as leather goods, sportswear, toys, and marine products. India's bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making the EU India's largest goods trading partner. India's services exports stood at USD 46 billion. The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments. ''I could easily see a doubling of exports,'' Goyal said. He appealed to domestic businesses to ''seize'' the opportunity, increase investments, expand capacities, and get out of the cosy comfort of the large and huge domestic market. He was replying to a question about whether the EU's strict safety and quality standards could pose challenges for Indian exporters. Meeting the EU's standards will not be challenging as domestic exporters have the capability, wherewithal, and knowledge. ''All we need to do is expand capacities, we need to get out of the cozy comfort of this large, huge domestic market and look for outward markets, which we are opening up through these various trade deals, particularly in developed nations where you get a good price, where there's no competition, because we are largely exporting labour-oriented goods and services,'' he said. The EU mainly exports innovative products which are needed by India in its development cycle, the minister said, adding that the two complement each other. ''So, it's a very calibrated opening, wherever there could be a potential for a competition going forward as we also go up the development cycle, we've kept longer transition period for Indian industry to be competitive,'' he said, adding that at the end of the day, ''while we have business to look after, we have 140 crore consumers also to look after''. Consumers are the largest stakeholders in the FTA with the EU, and goods need to become cheaper for them, he added. ''So, it's a very fine balance one has to create and develop, particularly where there's fair play, where there's no predatory pricing or dumping of overcapacity in your economy. I think equal opportunities on both sides will ensure the balance,'' Goyal said. Indian bakers, confectioners, fruit juice makers and processed meat producers should not worry and, in fact, start looking at the high-paying large European market, the minister said. On concerns over the Carbon Border Adjustment Mechanism (CBAM), Goyal said there are adequate safeguards in the trade agreement. ''First of all, it must be noted that CBAM applies to everybody. All domestic producers in Europe also have to pay the same taxes as people who export to Europe. You could almost consider it like a GST. Like we have GST on domestic as well as on imports, they have a CBAM on everybody. So, it's not a discriminatory tax,'' he said. The safeguards include approval of Indian verifiers so that domestic exporters do not have to go to Europe for verification of their carbon print, and that will save a lot of cost due to the FTA, and the industry can get products certified and sell to Europe. Taxes paid in India for carbon will also be recognised and offset against the CBAM payment. He added that India, on its part, is already taking a series of measures to decarbonise the economy. ''Also, there's huge potential for our hydrogen, green hydrogen, green ammonia, our solar equipment, our wind equipment to sell in the European Union. So, effectively, this (trade pact) is opening the doors for us,'' Goyal said, adding that some Indian steel makers themselves are going green at a faster pace. The EU has implemented CBAM, or carbon tax, from January 1 on carbon-intensive imports like steel. When asked whether this mechanism would pose challenges for the Indian steel sector, which is more carbon-intensive than the global average, the minister said there were two aspects to the issue, noting that CBAM would apply even without a free trade agreement and that the pact provides additional safeguards, including the presence of verifiers in India. ''If we feel that we are being discriminated, or it's hurting our exports in any way, or any new sectors are coming in (under this regulation), we can talk to Europe and rebalance to make sure our exporters don't get hurt, or the benefits of FTA don't get hurt,'' he said. He added that the FTA is about the future. ''As I said earlier, we may be today 30-40 per cent more carbon intensive, but the speed at which we are going green is so fast that the same thing will become a competitive advantage for our manufacturers.'' Further, the minister said Europe has plans to invest USD 800 billion in the next five years on defence, and for that, they may need skilled labour from India, or they will bring their technologies here to manufacture in the country. ''So, this will open up a very comprehensive, multifarious dimension between the two countries,'' he said. Asked when the 'father of all deals' will be finalised, a reference to a deal with the United States, the minister said India is working towards closing it ''quickly'', as ''good negotiations'' are happening. On India's exports target of USD 2 trillion, he expressed hope that it can be achieved by 2032.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)