New Delhi: India and the European Union (EU) have successfully concluded negotiations on a historic free trade agreement (FTA), marking a significant milestone in their economic partnership. Ursula von der Leyen, President of the European Commission, announced on social media platform X that Europe and India have reached consensus on the so-called “Mother of All Deals.” She highlighted that this agreement will create a free trade zone encompassing two billion people, benefiting both parties and representing just the beginning of deeper collaboration.
Antonio Luís Santos da Costa, President of the European Council, paid tribute to Mahatma Gandhi, stating, “Peace does not come from the clash of arms but from the practice of justice; this thought remains highly relevant even today.”
The 16th India-EU Summit is scheduled to be hosted in the national capital, where Prime Minister Narendra Modi will oversee the formal announcement of this eagerly awaited FTA in the presence of Ursula von der Leyen and Antonio Costa.
According to Commerce Secretary Rajesh Aggarwal, the India-EU FTA negotiations have been completed, and the summit will officially declare the outcome. He described the agreement as balanced and forward-looking, expecting it to strengthen economic integration and significantly increase trade and investment flows between India and the EU.
Officials indicated that after legal scrutiny, the agreement is expected to be signed within approximately six months and come into effect the following year. The summit will also provide an opportunity to deepen cooperation in key areas such as trade, security and defence, clean energy transition, and people-to-people contacts.
The agreement is anticipated to have a major impact on India’s automobile sector. It will open the Indian market to European car manufacturers by substantially reducing import duties, potentially lowering them from the current 110 percent to around 40 percent. This change could make vehicles from companies like Volkswagen, Mercedes-Benz, and BMW more affordable for Indian consumers. At present, European companies hold about a four percent share in India’s annual car market of 4.4 million units.
The India-EU FTA is seen as a significant step towards expanding India’s global trade footprint. It could also help balance the effects of high tariffs imposed by the United States and open new opportunities for Indian exports such as textiles and jewellery in European markets.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment