India-EU sign historic FTA

New Delhi: India and European Union (EU) have signed a historic trade deal after months of negotiations which both the sides term as a “mother of all deals”.

The deal gathered international attention, which is expected to create a market for 200 billion people and account for nearly 25 per cent of the global gross domestic product.

The announcement was made on Tuesday, ending negotiations that were relaunched in June 2022 after a hiatus of almost nine years, paves way for an FTA.

Commerce secretary Rajesh Agrawal confirmed on Monday that negotiators of India and the EU have successfully concluded what he described as an “ambitious, balanced, forward-looking and mutually beneficial India-EU free trade agreement (FTA)”.

The signing of India-EU trade deal was confirmed by Prime Minister Narendra Modi on Tuesday.

The EU is India’s biggest trade partner, with trade in goods worth $135 billion in 2023-24. The FTA will significantly boost trade between India and EU member states at a time when countries are focused on derisking amid trade disruptions caused by the policies of the President Donald Trump administration in the US.

Announcing the signing of the trade deal, Prime Minister Narendra Modi said on Tuesday this agreement will bring major opportunities for the public in India and Europe.

"This is a perfect example of a partnership between two major economies of the world...This agreement represents 25 per cent of the global GDP and 1/3rd of global trade," he said.

PM Modi said this agreement empowers our shared commitment towards democracy and rule of law.

"This Free Trade Agreement with the European Union will also complement Britain and EFTA's agreements...I congratulate the people of the nation for this," he said.

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