Prime Minister Narendra Modi announced the signing of a free trade agreement between India and the European Union, emphasizing the significant opportunities it will bring for businesses, consumers, and the workforce. The agreement, described as the largest in India’s history, symbolizes the growing trust and shared values between the two economies. It aims to promote peace, stability, and cooperation in an increasingly uncertain global environment.
The FTA will lead to the elimination or reduction of tariffs on more than 90% of EU goods exports to India, including high duties on machinery, chemicals, and pharmaceuticals. Tariffs on EU beer will be halved, and duties on chemicals, aircraft, and spacecraft will be removed for most products. The EU predicts that the deal could double EU exports to India by 2032 and result in annual duty savings of up to 4 billion euros on European products.
This trade pact is expected to enhance economic ties between India and the EU, with the EU providing 500 million euros in support over the next two years to help India reduce greenhouse gas emissions and transition to a greener economy. The agreement is set to boost exports to the Indian market significantly and strengthen economic relations between the two entities in the face of global trade challenges.
