India-EU FTA: After nearly twenty years of negotiations, India and the European Union will lastly be signing the Free Trade Agreement, on Tuesday. Both sides have called the FTA the ‘Mother of all deals’, as it’s a main step for the partnership between the two nations. India and the EU collectively, account for practically one-fifth of world commerce and about 25% of the world’s inhabitants.”The announcement is predicted at the EU-India summit, the place leaders are additionally probably to undertake a joint complete strategic agenda. The discussions will be centered on commerce, linked to the free commerce settlement negotiations that had been first launched in 2007, revived in 2022 and concluded this week.
Ahead of the Summit, European Commission President Ursula von der Leyen highlighted the significance of the partnership, “India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness. Leveraging our complementary strengths. And building mutual resilience. We are showing a fractured world that another way is possible.”Highlighting India’s commerce with the bloc, European Council President Antonio Costa mentioned, “India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order.”
India-EU commerce
The two nations have seen their bilateral items commerce has doubling over the previous ten years. EU imports from India recorded a development of 140%, whereas EU exports to India rose by 58%. The EU is at the moment India’s second-largest buying and selling accomplice in phrases of commerce items, accounting for 11.5% of India’s complete items commerce. Back in 2024, EU-India items commerce crossed €120 billion. EU’s imports from India had been valued at €71.4 billion, whereas exports to India amounted to €48.8 billion.EU’s exports to India majorly consist of equipment and home equipment, transport gear and chemical substances. At the identical time, the bloc’s imports from India equipment and home equipment, chemical substances and fuels dominate EU imports from India. Services commerce has adopted an identical upward pattern, over the corresponding interval. Trade in companies between the EU and India exceeded €66 billion, together with greater than €37 billion in EU imports and round €29 billion in exports. Over the final ten years, companies commerce has greater than doubled, registering development of 243%. Telecommunications, pc and data companies, skilled and administration consulting, and transport companies are amongst the key sectors concerned.Investment ties additional spotlight the scale of engagement. In 2024, the EU’s international direct funding in India stood at over €132 billion, positioning the bloc as India’s main international investor.Negotiations for the free commerce settlement had been relaunched in June 2022, alongside parallel talks on funding safety and geographical indications. The commerce discussions purpose to take away boundaries, enhance exports and open up companies, reinforcing the financial basis of the India-EU partnership.
