India, EU Economies to Get Significant Boost With Trade Deal Today
New Delhi: India and the European Union will announce the agreement, described as the “mother of all agreements”, on Tuesday following the successful conclusion of long-running negotiations.
India and the EU together account for nearly a fifth of global trade and nearly 25 percent of the world’s population, underscoring the growing economic and strategic importance of the partnership.
The EU and India are close partners working to promote economic prosperity, a rules-based international order and sustainable development; Trade and investment constitute the pillars of the relationship.
At the EU-India summit scheduled for Tuesday, leaders are expected to adopt a common comprehensive strategic agenda and discuss trade issues in the context of free trade agreement (FTA) negotiations. Negotiations were first launched in 2007, restarted in 2022 and ended on Monday.
European Commission President Ursula von der Leyen said India and Europe have chosen strategic partnership, dialogue and openness, adding that the agreement shows that cooperation is possible in a fragmented world.
European Council President Antonio Costa stated that India is a very important partner for the EU and noted that both parties share the responsibility of preserving the rules-based international order.
In goods trade, the EU is India’s second largest trading partner after China and accounts for 11.5 percent of India’s total trade in goods. The value of EU-India goods trade in 2024 was over €120 billion.
In the last decade, bilateral trade in goods has doubled; EU imports from India increased by 140 percent, and EU exports to India increased by 58 percent.
Trade in services also expanded rapidly. EU-India trade in services will exceed €66 billion in 2024, growing by more than 240 percent over the last decade.
Foreign direct investment further emphasizes the depth of ties; The value of EU investments in India exceeded €132 billion in 2024, making the EU the country’s largest investor.
While the FTA aims to reduce trade barriers, increase exports and expand trade in services, parallel negotiations on investment protection and geographical indications are also ongoing.
