India and EU close to sealing FTA

India-EU FTA may be finalized in 1-2 months, says CIM Piyush Goyal, expanding trade opportunities across Europe. India aims to boost economic resilience through FTAs, BTAs, and specialized industrial zones for Swiss firms.

Commerce and Industry Minister Piyush Goyal has announced that a Free Trade Agreement (FTA) between India and the 27-nation European Union (EU) is likely to be finalized, within the next one to two months. He stated that this agreement along with others already signed or under negotiation, will help insulate India from ongoing global geopolitical disruptions. 

Negotiations for the India-EU FTA have been ongoing since 2022, and once concluded, it will provide India with preferential market access across Europe. This follows India’s recent FTAs with the UK and the European Free Trade Association (EFTA).

The Minister also highlighted India’s active discussions with the United States on a Bilateral Trade Agreement (BTA). A U.S. delegation led by the assistant trade representative recently concluded a week-long round of negotiations on the interim BTA in New Delhi. He emphasized India’s growing global trade footprint, citing existing agreements with Australia and some West Asian nations, as well as ongoing talks with New Zealand, Peru, and Chile. He remarked that India’s expanding trade network and its strong growth potential position it to withstand global economic shocks better than most countries.

In addition, addressing the gathering, the Minister proposed the creation of Swiss enclaves in India to provide industrial and social infrastructure tailored for Swiss companies looking to establish operations. This proposal is part of India’s broader strategy to attract global investment and populate the 12 industrial smart cities and 100 new industrial parks planned along various industrial corridors. These enclaves would serve as dedicated zones offering ease of doing business and world-class facilities. He has also extended similar offers to other countries, aligning with the government’s aggressive push to transform India into a global manufacturing and investment hub. 

In the financial year 2023-24, bilateral trade in goods between India and the European Union reached US$ 137.41 billion, with Indian exports accounting for US$ 75.92 billion and imports from the EU standing at US$ 61.48 billion. This makes the EU India’s largest trading partner for goods. The EU market represents approximately 17% of India’s total exports, while India’s share in the EU’s global exports is around 9%. Additionally, bilateral trade in services between the two sides was valued at US$ 51.45 billion in 2023, underscoring the depth and scale of their economic engagement.