India-EU start discussions on free trade agreement

New Delhi: The negotiations for a free trade agreement started between India and the European Union on Monday. Ugo Astuto, EU Ambassador for India and Bhutan, shared this information. This agreement is considered a crucial phase in strengthening the relations between India and the European Union. The Union informed that talks between senior officials from India and the European Union would continue till Friday, July 1st. Only last week, Union Commerce Minister Piyush Goel had given indications regarding this.

Moreover, the talks for a free trade agreement had started for the first time between India and the European Union in 2007. But the talks were suspended in 2013, given the differences. Besides, over the past few years, both parties have taken steps to initiate the negotiations. The efforts have been successful and the first round of talks has started on Monday.

Furthermore, European Union is an important trading partner of India. The annual Indian trade with the European Union is more than $110 Billion. European Union is the third-largest trading partner of India. In fiscal 2021-22, India exported goods worth $65 billion, and the EU members’ imports stood at $51.4 billion. 11% of the total Indian trade is with the European Union.

Whereas India is the tenth biggest trading partner for the European Union. The Indian share in the total European trade for 2021 is a meagre 2%. Therefore, Union Commerce Minister Piyush Goel expressed confidence that the free trade agreement will play an essential role in exploiting the full potential of the India-EU trade.