The dialogue signals a renewed push to advance negotiations on the India-EU FTA, a pact that has faced hurdles over the years due to differences on issues such as market access, tariff reductions and regulatory alignment.
Goyal, reaffirming the Modi government’s commitment to making India a developed nation by 2047, proposed a six-point agenda to guide the India-EU partnership.
Also Read | India, EU aiming for a mutually beneficial FTA: Piyush Goyal
The agenda emphasised strengthening economic ties between India and the European Union, built on shared values such as democracy, the rule of law, and an independent judiciary. Both sides acknowledged the immense potential of integrating their combined $24 trillion market to benefit over two billion people.
The EU, India’s largest trading partner in goods, accounted for bilateral trade worth $137.41 billion in 2023-24. Services trade added another $51.45 billion in 2023, reflecting the economic potential of a robust FTA.
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India and the EU have held nine rounds of negotiations. The latest round, held from 23 to 27 September 2024, made limited headway on key issues such as rules of origin and government procurement.
During the 9th round of talks, India and the EU discussed a 12-point agenda, which included deforestation, electric vehicles, sustainability, carbon tax or Carbon Border Adjustment Mechanism (CBAM), sanitary and phytosanitary (SPS) measures, technical trade barriers, textiles, services benefits for IT professionals, trade of more goods and services, taxes on liquors, among others.
The talks also focused on creating a fair and balanced trade framework by reducing barriers, simplifying processes, and boosting competitiveness, especially for small businesses, farmers, and fishermen. Enhancing high-quality manufacturing was also highlighted, aligning with Prime Minister Modi’s vision of “zero defect” and “zero effect” production through collaboration, standard harmonization and the exchange of best practices, the ministry said.
Also Read | EU, US-type consumer product quality testing model in the works
Committed to strengthening supply chains
Both sides expressed their commitment to strengthen supply chains by fostering technological innovation and ensuring access to critical raw materials, thereby reducing reliance on non-market economies. Finally, India’s potential as a bridge between the two economies was emphasised, leveraging its young and skilled workforce to drive mutual growth, innovation and development.
With India’s focus on achieving a $2 trillion export target by 2030, the FTA could be a foundation for expanding its share in global trade.
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India, European union, Piyush Goyal, free trade agreement, FTA, Europe, trade
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