India and European Union Finalise Historic Free Trade Agreement
In a landmark development, Prime Minister Narendra Modi declared on Tuesday that the India-European Free Trade Agreement has been successfully finalised. This monumental pact, which European Commission President Ursula von der Leyen famously termed as 'the mother of all trade deals', marks a significant milestone in bilateral relations. The announcement came during the 16th India-EU Summit held at Hyderabad House in New Delhi, where leaders from both sides gathered to cement this transformative agreement.
Political Declaration Signed with European Leaders
The representatives from India and the European Union formally signed a political declaration to affirm the conclusion of negotiations for the Free Trade Agreement (FTA). The signing ceremony was graced by the presence of António Costa, President of the European Council, and Ursula von der Leyen, President of the European Commission. Union Minister Piyush Goyal represented India during this crucial event, underscoring the government's commitment to fostering stronger economic ties with Europe.
PM Modi Hails the Agreement as a Blueprint for Prosperity
Addressing the gathering, Prime Minister Narendra Modi emphasised the historic nature of this agreement. "Today, India has finalised the biggest Free Trade Agreement in its history. On 27th January, India signed this FTA with 27 European nations," he stated. The Prime Minister elaborated that this pact is not merely a trade agreement but a comprehensive blueprint for shared prosperity. He highlighted that it will provide Indian farmers and industries with enhanced access to European markets, thereby boosting investment, fostering new innovation partnerships, and strengthening global supply chains.
Reflecting on the broader context, PM Modi noted, "Yesterday was a historic moment when the European Union leaders took part in India's Republic Day celebrations for the first time. Today is another such moment, when two major democratic powers are adding a decisive chapter in their relationship." This statement underscores the deepening diplomatic and economic collaboration between India and the EU.
European Leaders Praise the FTA's Significance
Following Prime Minister Modi's address, António Costa, President of the European Council, spoke about the enduring trade relations between the two continents. He remarked, "Trade has flowed between our two continents for centuries. Trade is a crucial geopolitical stabiliser and the fundamental source of economic growth." Costa further added that trade agreements like this one reinforce a rules-based economic order and promote shared prosperity. He described the India-EU FTA as "one of the most ambitious agreements ever concluded, creating a market of 2 billion people."
European Commission President Ursula von der Leyen echoed these sentiments, expressing gratitude to Indian leaders and praising the FTA. "We have delivered the mother of all deals," she declared, emphasising that India and the EU have decided to become reliable partners through this agreement.
Formal Signing Expected Within Six Months
Commerce Secretary Rajesh Agrawal provided further details, indicating that while the negotiations have concluded successfully, the formal signing of the deal will occur after a legal scrubbing process. This process is anticipated to take approximately five to six months, ensuring that all aspects of the agreement are meticulously reviewed and formalised.
Key Takeaways from the India-EU FTA
- The Free Trade Agreement between India and the European Union stands as the largest in India's history, encompassing 27 nations.
- It is expected to significantly enhance access for Indian farmers and industries to European markets, driving economic growth.
- The deal will create a vast market of 2 billion people, reinforcing and expanding economic ties between India and Europe.
- This agreement is poised to boost investment, form new innovation partnerships, and strengthen global supply chains, positioning both regions for sustained prosperity.
The finalisation of the India-EU Free Trade Agreement represents a pivotal moment in international trade, highlighting India's growing economic stature and its strategic partnership with Europe. As both sides move towards formalising the deal, the focus remains on harnessing its potential to foster mutual growth and stability in the global economy.
