New Delhi is witnessing growing discussions around the India-European Union Free Trade Agreement (FTA), often dubbed the ‘mother of all deals.’ Experts express varied views on its potential impact, with conversations also emerging in neighbouring countries like Pakistan and Bangladesh.
According to Euronews, major global powers are increasingly using tariffs as a strategic tool to monopolise supply chain dependencies. In this context, the India-EU FTA suggests openness in negotiations amid a landscape where countries seek to counterbalance mutual dependencies. The global trade dynamics are rapidly evolving, especially following tariff policies introduced during the Trump administration.
The Euronews report highlights that as leading nations weaponise tariffs and leverage supply chain reliance, this agreement goes beyond just tariff reductions. It reflects a broader need for powerful countries to strengthen unity without compromising their core values.
For India, the deal indicates a serious commitment to becoming a top-tier manufacturing and service powerhouse, while retaining its political ideology. Europe aims for this agreement to move beyond headlines, measuring progress through market access, energy collaboration, industrial transition challenges, and partnerships in technology and supply chains supported by clear, measurable milestones.
The report also points out that an FTA primarily sets a framework, but effective cooperation at the company level in key geo-economic industries remains essential.
Under the FTA, India secured tariff reductions or eliminations on 97% of EU exports by value, while the EU granted preferential access for 99% of Indian exports. Concessions agreed include maintaining a 40% tariff on European cars, while India agreed to gradually phase out duties on essential industrial goods.
Europe faces significant pressure to diversify its economic relationships, and the FTA is seen as a promising start that could mark the beginning of a more strategic partnership year.
Additionally, the India-EU Trade and Technology Council (TTC) is already advancing cooperation in areas such as semiconductor production and digital public infrastructure interoperability. The FTA is expected to foster a reliable supplier ecosystem and initiate joint research and development pathways.
Recent reports suggest the EU aims to reduce technological and digital dependence on the United States. In this scenario, close collaboration on AI and trusted data sharing through the FTA could offer alternatives to dominance by the US and China in these fields.
My name is Himanshu Tiwari. 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.
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