New Delhi: Talks regarding the free trade agreement started between India and the European Union started on Friday. Union Commerce Minister Piyush Goyal welcomed the development. During these comprehensive talks, discussions regarding investment and Geographical Indications (GI) will also be held along with trade. It is claimed that if the talks are successful, Indian trade and investment with the 27 member countries of the European Union will increase significantly. Last year itself, the European Union withdrew from the free trade agreement with China. Against this background, the discussions restarting between India and the European Union have attained not only economic but also strategic importance.
Since 2007, India and the European Union have discussed free trade and investments. But the talks fell through in 2013 due to differences over custom tariffs and the vehicle manufacturing sector. After that, the negotiations resumed after a gap of 8 years. Detailed discussions over trade, investment and GI are expected in these negotiations. GI is the process of recognising agricultural products specific to a geographical location and this has attained great significance in the current scenario.
Although the free trade agreement is still not in place, Europe is a significant trading partner for India. The bilateral trade between India and Europe has reached 120 billion Euros. European Union is the third-largest trading partner of India. India exported goods worth a whopping $65 billion to the members of the European Union. Whereas Indian imports from these countries are pegged at $51.4 billion.
11% of the total Indian trade is with the European Union. Whereas, India is the 10th-ranked trading partner of the European Union. Also, the Indian share in the European Union’s trade for 2021 is a meagre 2%. Union Commerce Minister Piyush Goyal expressed confidence that the free trade agreement will play an important role in exploiting the full potential of the Indo-EU trade.
Meanwhile, the Indian trade with the European Union has also gained diplomatic and strategic importance. Besides, last year itself, the European Union withdrew from the free trade agreement with China. Trampling of human rights and the aggressive and ruthless Chinese stand on Taiwan and Hongkong appeared to be the reasons for the withdrawal. The difference with China is reflected in the trade of the European Union. But at the time of withdrawing from the free trade agreement with China, the European Union had announced the resumption of talks with India for the free trade agreement.
The United Kingdom has exited the European Union and has started negotiating a free trade agreement with India. As per the British Prime Minister, the deal will be finalised by Diwali this year. Against this background, the European Union seems to have started moves to increase trade cooperation with India.
Related posts:
US President receives a grand welcome in Ahmedabad
Indian concerns increase with the spread of Coronavirus
Efforts to put India-EU FTA talks on fast track
EU delegates endorse India’s stand after visiting Jammu-Kashmir
15th India-EU summit begins
India, US discuss Free Trade Agreement, likely to partner on 5G
United Kingdom to sign the Free Trade Agreement with India, the biggest after Brexit: British PM Boris Johnson
India-EU start discussions on free trade agreement – EU Ambassador
