India-EU Trade Talks Advance Towards Comprehensive FTA as Bilateral Trade Surges

Highlighting the growing proximity and rising trade between India and the EU, Shri Goyal underscored the mutual goal of achieving a balanced, ambitious, and comprehensive Free Trade Agreement (FTA).

Union Minister of Commerce and Industry, Shri Piyush Goyal, engaged in discussions with ambassadors and representatives from the European Commission and EU member nations, including Austria, Belgium, Bulgaria, Czech Republic, Estonia, Italy, Ireland, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovak Republic, Spain, and Sweden, to bolster India-EU trade relations. The meeting was attended by Minister of State for Commerce and Industry Shri Jitin Prasada, Commerce Secretary, DPIIT Secretary, and senior officials.

India-EU Free Trade Agreement (FTA): A Strategic Priority

Highlighting the growing proximity and rising trade between India and the EU, Shri Goyal underscored the mutual goal of achieving a balanced, ambitious, and comprehensive Free Trade Agreement (FTA). After nine rounds of intensive negotiations, Shri Goyal emphasized the need for political direction to conclude a commercially meaningful agreement that respects the sensitivities and priorities of both sides.

The Minister reiterated India’s commitment to sustainability, emphasizing the principle of Common But Differentiated Responsibilities (CBDR) and the need for tailored implementation pathways reflecting varied stages of development. He also projected that India’s economy, growing at a robust 7-8% annually, is on track to become the world’s third-largest economy within a few years and achieve a $35 trillion GDP milestone by 2047.

Significant Economic Gains for Both Sides

EU representatives acknowledged the untapped potential in bilateral trade and highlighted the benefits of integrating the two economies to strengthen supply chain resilience. The ongoing collaboration under the India-EU Trade and Technology Council (TTC) was also discussed, a mechanism India shares exclusively with the EU and the United States.

India-EU Bilateral Trade: A Growth Trajectory

The European Union (EU) has emerged as India's largest trading partner in goods, with bilateral trade reaching $137.41 billion in 2023-24. Additionally, trade in services between the two stood at $51.45 billion in 2023. The FTA is expected to further boost trade by expanding exports and diversifying value chains, offering opportunities for Indian industries and enhancing bilateral economic cooperation.

India's Global Trade Strategy

India is actively pursuing balanced trade agreements with major global economies, aligning with its vision of expanding its share in international trade. The collaboration with the EU is a cornerstone of this strategy, reflecting India's dedication to integrating its economic growth with global markets while addressing sustainability and innovation.

The discussion highlighted the shared commitment to fostering deeper economic ties and leveraging technology and trade as key drivers for mutual growth and resilience in the global economy.