India and European Union reach historic agreement on major trade pact

India and European Union Reach Historic Trade Deal

A significant trade agreement between India and the European Union has been reached, covering approximately 25% of global gross domestic product (GDP). The deal is expected to create a free trade zone for over two billion people. According to Ursula von der Leyen, European Commission President, “We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit.”

The landmark agreement follows nearly two decades of negotiations and is seen as a major breakthrough in bilateral trade between India and the EU. Indian Prime Minister Narendra Modi hailed the deal’s benefits, stating that it will bring opportunities for India’s 1.4 billion population and millions of people in the EU.

The trade pact covers various sectors, including textiles, gems and jewellery, leather goods, and technology. The EU views India as an important market for the future, while New Delhi sees Europe as a potential source of technology and investment.

Under the agreement, tariffs on 96.6% of EU goods exports to India will be eliminated or reduced. This is expected to save up to 4 billion euros ($4.74bn) a year in duties on European products. The deal also includes provisions for privileged access to key areas such as financial and maritime services.

The formal signing of the deal is expected to take place after legal vetting, which is anticipated to last five to six months. Implementation of the deal is expected to occur within a year. The EU expects its exports to India to double by 2032 as a result of the agreement.

Source: Al Jazeera