India – EU Trade Pact: A strategic push for deeper global integration |
India is set for a quantum leap in a global trade as India and the European Union (EU) have clinched the deal for a Free Trade Agreement (FTA), marking a red-letter day in one of India’s most strategic economic partnerships, described as “mother of all deals” by European Commission President Ursula von der Leyen. Steered and drawn as modern, rules-based trade partnership, the FTA responds and withstands to contemporary global challenges while enabling deeper market integration between the world’s 4th and 2nd largest economies. The free trade agreement (FTA) between India and the European Union (EU) is significant not just on account of the sizes of the economies involved, but also because it showcases Indian negotiators’ skill and maturity when dealing with a powerful counterparty. India has managed to negotiate favourable terms in each of the previous eight FTAs of the last four years or so, but those were with much smaller economies. With a combined market estimated at over INR 2091.6 Lakh Crore (USD 24 trillion), bringing unparalleled opportunities for the 2 billion people of India and the EU, the FTA unlocks significant potential for trade and innovation.
The FTA delivers unprecedented market access for more than 99% of India’s export by trade value, while preserving policy space for sensitive sectors and reinforcing India’s developmental priorities. The data revealed by Ministry of Commerce and Industry, Government of India that the bilateral merchandise trade between India and the EU has demonstrated sustained growth, valued approximately at INR 11.5 Lakh Crore........