India and the European Union are nearing the finalisation of a Free Trade Agreement (FTA) as negotiations continue to progress strongly, according to the Ministry of External Affairs (MEA). The MEA's Secretary (West), Tanmaya Lal, expressed optimism that the agreement will be finalised soon, following a recent visit by European Commission President Ursula von der Leyen to India.

During this visit, von der Leyen and Indian Prime Minister Narendra Modi directed their respective negotiating teams to conclude the FTA within the year, emphasizing the importance of enhancing trade and economic ties between the two entities.

The negotiations for the FTA have been ongoing since 2021, after previous talks collapsed in 2013. The agreement aims to remove trade barriers, open up services and public procurement markets, and ensure protection of geographical indications.

It also seeks to provide a predictable investment environment and enforceable rules on trade and sustainable development. Despite progress, areas such as agriculture, pharmaceuticals, and vehicles have been significant stumbling blocks in the negotiations.

The EU is India's largest trading partner, with trade in goods valued at €124 billion in 2023. India is the EU's ninth-largest trading partner, accounting for 2.2% of the EU's total trade in goods.

The FTA is seen as crucial for both sides, particularly in the context of rising global protectionism and trade tensions. It would be the largest deal of its kind worldwide and is expected to mitigate economic risks associated with geopolitical tensions.

The next steps in the negotiations include the 11th round of talks, which are expected to intensify following recent reciprocal tariffs imposed by the U.S. on both India and the EU.

The agreement's successful conclusion would not only boost bilateral trade but also strengthen the strategic partnership between India and the EU, aligning with their shared goals of cooperation and economic integration.

ANI