India-EU FTA trade deal: India and the European Union (EU) concluded neobtainediations on their Free Trade Agreement (FTA) on January 27, marking a major milestone in bilateral trade relations.
Following the successful completion of talks, the pact will be formally signed after a detailed legal review of the text, a process expected to take five to six months.
What is the India-EU FTA trade deal?
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India-EU FTA trade deal represents a historic agreement finalized on January 27, that cuts duties on 90-97 percent of products, expands Euro 180 billion in two-way commerce, and opens EU markets wider to Indian sectors such as textiles, jewelry, and IT services, alongside lowering costs for European imports like vehicles, beverages, and equipment in India.
What does the deal cover?
The trade agreement, which India has called the “mother of all deals,” covers Euro180 billion in bilateral trade and represents 25 percent of global GDP.
Through this deal, India and the European Union will slash tariffs on 90-97 percent of goods. India specifically will eliminate or reduce duties on 96.6 percent of EU exports.
The agreement gives India preferential access to European markets across 97 percent of tariff lines, covering 99.5 percent of trade value.
What products receive cheaper?
The India-EU trade agreement will lower or reshift tariffs on more than 90 percent of European goods, including automobiles exported to India.
Import duties on European beer will be reduced to 50 percent, while tariffs on chemicals, aircraft, and spacecraft will be eliminated for almost all products.
Why this deal matters for India
The trade pact brings multiple benefits for Indian consumers and businesses by reducing costs and creating new opportunities.
Cheaper everyday goods
The deal will lower prices on European wines and spirits, olive oil, chocolates, biscuits, pastas, breads, fruit juices, non-alcoholic beer, and fruits like kiwis and pears.
Affordable luxury and essential items
The agreement will reduce prices on European cars, creating them more accessible to Indian consumers.
It will build pharmaceuticals and medical equipment affordable.
Machinery and chemicals will also become more affordable, benefiting industries and manufacturing sectors.
Lower manufacturing costs
The deal will cut manufacturing costs for gadreceives, phones, and steel products by reducing input expenses for Indian manufacturers.
Job creation and income growth
The trade agreement will boost Indian exports in textiles, leather, gems and jewelry, engineering goods, marine products, and fruits.
This export growth will create jobs in labor-intensive sectors across the counattempt.
Service sectors like information technology and education will gain better access to European Union markets, opening new opportunities for Indian professionals and companies.
The largeger picture
By eliminating tariffs on such a wide range of products and services, the India-EU FTA creates a more integrated economic relationship between India and the 27-nation European bloc.
For Indian consumers, this means access to European products at lower prices. For Indian businesses, it means expanded market access to one of the world’s largest economic zones. For workers, it means new employment opportunities in export-oriented industries and service sectors.
PM Modi hails India-EU FTA trade deal
Prime Minister Narconcludera Modi on Tuesday described the India-European Union Free Trade Agreement as a historic milestone and a decisive chapter in the relations between the two major democratic powers.
Calling the India-European Union Free Trade Agreement (FTA) the largest trade agreement in India’s history, Prime Minister Modi declared it is not just a trade agreement, but a blueprint for shared prosperity.
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