EU and India Push Forward on Key Free Trade Agreement, Says Commissioner Hahn

European Commissioner Johannes Hahn emphasized the mutual benefits of a Free Trade Agreement (FTA) between India and the European Union. He highlighted the strategic importance of trade relations and introduced Eurobonds as attractive investments. Hahn underscored India's significance as the EU's biggest trade partner.

Johannes Hahn, European Commissioner for Budget and Administration, has advocated for a Free Trade Agreement (FTA) between India and the European Union. Speaking on Tuesday, Hahn emphasized that such an agreement would be beneficial for both parties. 'We believe it is important to have strong and close relations. Trade is one of the core elements of this relationship. It is not by chance that we are the strongest trade partner for India; that's why we think the next step should be a comprehensive free trade agreement, which I understand will be in the interest of both India and Europe...there is always room for improvement,' he stated.

Negotiations for an India-EU FTA were formally re-launched on June 17, 2022, and are reportedly in advanced stages. Commerce Secretary Sunil Barthwal indicated that the next round of negotiations is scheduled for September 23-27 in New Delhi. Hahn reiterated that trade relations between the two sides are at their peak, given that the EU is now India's largest trade partner. He also noted that the EU aims to leverage the Indian capital market to support its own economic recovery and resilience.

Hahn highlighted the benefits of Eurobonds, labeling them as a significant opportunity for Indian investors. 'It is a AAA-rated bond...it is a solid, sustainable, and successful bond which generates quite attractive yields...it contributes to the reinforcement of the European economy, means European single market. The European single market is very important for Indian companies,' he added.

Discussing global influence, Hahn pointed out that both India and the EU believe in a multipolar world and should take a leading role in shaping the global order. 'We are both very strong economic powers and if we cooperate even more, we can certainly influence the global situation. Working closely together also means having leverage in global discussions. Europe and India are best suited to reconcile the discussion between the West and the South,' he concluded. (ANI)

(With inputs from agencies.)