India seeks balanced FTA with the European Union

During ongoing trade talks, Commerce Minister Piyush Goyal emphasised sustainable growth, resilience, and deeper economic ties

December 12, 2024

The meeting with EU Ambassadors and member states focused on deepening the economic partnership and advancing FTA negotiations

Goyal stressed the importance of sustainability and proposed the principle of Common But Differentiated Responsibility (CBDR) in addressing development challenges

India-EU bilateral trade in goods reached US$137.41 billion in 2023-24, with services trade adding US$51.45 billion, showcasing strong economic ties

The FTA is expected to strengthen global supply chains and diversify India’s exports while respecting the sensitivities of both parties

India is advancing efforts to finalise a balanced and ambitious Free Trade Agreement (FTA) with the European Union (EU), Commerce Minister Piyush Goyal confirmed during a meeting with EU Ambassadors and member states. He underscored the importance of creating an agreement that respects mutual sensitivities while unlocking significant economic potential between the two regions.

Highlighting India’s robust growth trajectory, Goyal projected an annual economic expansion of 7-8%, estimating the GDP could reach US$ 35 trillion by 2047. He stressed that integrating India and the EU economies would bolster global supply chain resilience and drive sustainable development.

Sustainability featured prominently in the discussions, with Goyal advocating for the principle of Common But Differentiated Responsibility (CBDR) to address disparities in development. The EU delegates echoed his optimism, recognising vast untapped economic opportunities between the two regions.

India’s bilateral trade with the EU already showcases strong ties, with goods trade reaching US$137.41 billion and services trade at US$51.45 billion in 2023-24. The FTA is seen as a critical tool for diversifying exports and strengthening value chains.

Goyal also highlighted the India-EU Trade and Technology Council, a unique collaborative mechanism that underscores their relationship’s strategic depth. The Minister reiterated India’s broader strategy to craft balanced trade agreements with key global partners, boosting its global market share and driving long-term sustainable economic growth.

Source: Economic Times

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