New Delhi, Jan 24 (IANS): European Commission President Ursula von der Leyen expressed optimism about the impending India-Europe Free Trade Agreement (FTA) during the World Economic Forum, indicating that Europe is diversifying its markets in light of U.S. tariff issues and shifting global economic dynamics.
She highlighted the potential of this agreement to create a market encompassing 2 billion people, representing nearly a quarter of global GDP, and noted it as a significant opportunity for Europe to engage with fast-growing economic centers.
The FTA announcement is expected on January 27, following India’s Republic Day celebrations, coinciding with visits from top EU leaders.
Both India and the European Union aim to finalize the FTA negotiations during the upcoming summit, establishing a document for legal processing and ratification by relevant EU bodies. In addition to the trade agreement, a security and defense partnership and a mobility pact for Indian professionals are also set to be signed.
The trade deal is positioned as India’s largest, fostering enhancements in trade with the EU, India’s foremost trading partner, with goods trade reaching $135 billion in FY24.
The FTA is anticipated to facilitate greater market access despite ongoing discussions on sensitive issues, including the EU’s Carbon Border Adjustment Mechanism. India is advocating for zero-duty access for various labor-intensive sectors, such as textiles and handicrafts, as negotiations approach completion, according to Commerce Minister Piyush Goyal.
