NEW DELHI: In a significant development for global trade, Prime Minister Narendra Modi championed a "double engine" growth strategy during the signing of what he termed a "historic" free trade agreement between India and the European Union on Tuesday. The announcement comes against a backdrop of what the Prime Minister described as "turmoil in the global environment," with the India-EU partnership poised to inject much-needed stability into the world order.
A Strategic Alignment of Market Economies
Addressing the India-EU Business Forum, PM Modi emphasized that this monumental agreement represents the "biggest free trade agreement" and serves as a "blueprint for common prosperity." He elaborated on the deep-rooted connections between the two economies, stating, "This alignment is not an accident. As market economies, we share common values, we have shared priorities for global stability, and as open societies, there is a natural connection between our people."
The Prime Minister underscored that this strong foundation is now being leveraged to elevate the partnership to unprecedented heights. "We are establishing it as one of the world's most influential partnerships, and the results are clearly visible," he declared, highlighting the tangible progress made over the past decade.
Decade of Remarkable Growth and Investment
PM Modi provided compelling statistics to illustrate the scale of the existing economic engagement. He revealed that bilateral trade has doubled in the last ten years, reaching an impressive 180 billion Euros. Furthermore, more than 6,000 European companies are currently operating in India, with over 120 billion Euros of investment flowing from the European Union into the Indian market.
On the flip side, Indian investment in the EU has also seen substantial growth, climbing to nearly 40 billion euros. "Today, there is deep cooperation between India and European companies in every sector, including R&D, manufacturing, and services," PM Modi noted, acknowledging business leaders as both the drivers and beneficiaries of this thriving relationship.
Transforming Partnership into a Whole-of-Society Endeavor
The Prime Minister articulated a forward-looking vision, stating, "Now is the time to transform this partnership into a whole-of-society partnership." It is with this ambitious vision that the comprehensive Free Trade Agreement was finalized, marking a new chapter in India-EU relations.
He outlined the sector-wise benefits that the FTA is expected to deliver, particularly in the context of global economic uncertainty. The agreement will facilitate easy access to the European Union market for India's labor-intensive products, encompassing textiles, gems and jewellery, auto parts, and engineering goods.
New Opportunities for Agriculture and Services
PM Modi highlighted that fruits, vegetables, processed foods, and marine products will discover new opportunities under this pact, directly benefiting farmers and fishermen across India. The service sector is also set to gain significantly, with the IT, education, traditional medicine, and business services industries poised to reap particular advantages.
This ambitious free trade agreement, often referred to as the "mother of all deals," was finalized at a critical juncture marked by heightened global tensions and widespread trade disruptions, many of which stem from recent tariff policies. The long-pending FTA is anticipated to markedly deepen bilateral engagement by unlocking fresh avenues for cooperation across a wide range of sectors, solidifying India and the EU's roles as pillars of stability in an uncertain world.
