October 25, 2024
India’s Commerce Minister called for mutual respect in India-EU Free Trade Agreement (FTA) negotiations
He identified the need to respect economic differences between the EU’s high-income and India’s US$ 1,000 per capita economies
India’s rapid infrastructure growth and economic resilience create a favourable climate for foreign investment
The minister sees significant strategic collaboration potential between India and Germany, especially in precision engineering and infrastructure scaling
Commerce Minister Piyush Goyal underscored the potential for a strategic partnership between India and the EU at the 18th Asia Pacific Conference of German Business in New Delhi, advocating for a Free Trade Agreement (FTA) that honours each side’s sensitivities. Goyal highlighted India’s vast consumer base of 1.4 billion, many aspirational and young, suggesting that an FTA would yield mutual benefits. He pointed out that while the EU offers cutting-edge technology and innovation, it faces high manufacturing and service costs, making collaboration with India advantageous.
Goyal emphasised three principles to expedite the FTA process: respect for each side’s cultural and economic differences, consideration of India’s lower per capita income compared to the EU’s wealthier economies, and a recognition of India’s ambition to bridge that income gap over time. He pointed out that India’s progress in the Asia-Pacific is anchored in a robust economic foundation and rapid infrastructure development, making the region an increasingly attractive option for investors.
The minister also underscored the value of closer collaboration with Germany, given Germany’s strength in precision engineering and India’s proven capacity to scale infrastructure. Goyal asserted that such synergies between India’s capacity and Germany’s engineering prowess would create significant growth opportunities for both countries. He noted that India’s reform-focused policies, bolstered by PM Modi’s re-election, have positioned it as a resilient and forward-looking investment destination.
Source: Economic Times