India and the European Union have completed negotiations for a proposed free trade agreement, a move expected to increase trade and improve economic relations between the two sides. The announcement in this regard was made by Commerce Secretary Rajesh Agrawal on Monday.
Agrawal said the agreement has been designed in a balanced manner and looks ahead to future needs. From India’s point of view, the deal supports closer economic integration with the European Union.
He added that the agreement is expected to encourage higher levels of trade and investment between India and the EU, benefiting both economies.
“Negotiations have been successfully concluded. The deal has been finalised,” PTI quoted Agrawal as saying.
The legal review of the Free Trade Agreement (FTA) text is currently in progress and the aim is to complete all formal steps and sign the agreement as soon as possible, he said.
The agreement is likely to be signed later this year and could come into force early next year.
However, putting it into action will take time, as it needs approval from the European Parliament. In India, the agreement requires approval only from the Union Cabinet.
The FTA marks the conclusion of nearly 18 years of discussions, which began in 2007.
India-EU FTA to be formally announced on Tuesday
Union Commerce and Industry Minister Piyush Goyal has described the agreement as the most significant trade deal India has entered into so far, calling it “the mother of all deals”.
European Commission President Ursula von der Leyen and European Council President Antonio Costa, who were the chief guests for the Republic Day event, are scheduled to meet Prime Minister Narendra Modi on January 27 to finalise discussions.
The conclusion of talks for the agreement will be announced formally in the India-EU (European Union) Summit.
Once implemented, the free trade agreement is expected to offer duty-free access for several Indian products in the European market. Key beneficiaries are likely to be labour-intensive industries, including textiles, chemicals, gems and jewellery, electrical machinery, leather goods and footwear.
