New Delhi, Jan 20 (IANS) India and the European Union (EU) are close to finalising a landmark free trade agreement (FTA), with the formal announcement expected on January 27, a day after the Republic Day celebrations which will be attended by the top EU leadership as chief guests.
According to sources, the India-EU summit scheduled for Jan 27, will witness the successful conclusion of FTA negotiations. A document will be adopted by both sides to announce the conclusion of FTA negotiations, after which, the agreement will be put through the required legal process and ratification by the European Parliament and Council.
Both sides are also likely to sign a security and defence partnership agreement and a pact to enhance mobility for Indian professionals getting employment in the EU.
European Council President Antonio Costa and European Commission President Ursula von der Leyen, will be the chief guests at India’s 77th Republic Day celebrations before jointly co-chairing the summit.
A military contingent from the EU will, for the first time, participate in the Republic Day parade, reflecting the growing bilateral strategic relationship.
The trade deal will be the largest ever that India has signed, covering goods and services with the 27-nation European Union, one of India’s biggest export destinations. Commerce Minister Piyush Goyal’s has termed it as the “mother of all deals” to drive home the significance.
With a combined market of nearly two billion people, the agreement would link two of the world’s largest democratic economies amid the global economic uncertainty triggered by the US tariff turmoil and geopolitical tensions worldwide.
The European Union is India’s biggest trading partner, with trade in goods amounting to $135 billion in the FY24, and the FTA is expected to unlock additional market access and economic complementarities. Although the negotiations have been moving ahead, there is still a discussion on sensitive areas such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
India is pushing for zero-duty access for its labour-intensive sectors — such as textiles, leather, apparel, gems and jewellery, and handicrafts.
Last week, Commerce Minister Piyush Goyal stated that the talks for a trade agreement between India and the European Union (EU) have entered the final stage.
The minister visited Brussels earlier this month to attended high-level talks with the EU Trade and Economic Security Commissioner, Maros Sefcovic, as part of the efforts to secure a mutually beneficial India-EU FTA.
“During this dialogue, we deliberated across key areas of the proposed agreement. We reaffirmed our commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs while integrating Indian industries into global supply chains,” Goyal said.
--IANS
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