India and EU Near Completion of Groundbreaking Trade Agreement

India and the European Union (EU) are on the brink of sealing a transformative free trade agreement (FTA) that encompasses about 25% of global GDP. Prime Minister Narendra Modi has hailed this potential deal as the "mother of all deals," accentuating the vast opportunities it promises for entities and individuals on both continents.

During his virtual address at the Indian Energy Week, PM Modi stressed that this groundbreaking agreement reflects a robust partnership between two of the world’s prominent economies. He highlighted the positive impact this pact will have on India's manufacturing industries, including textiles, gems, and leather.

This trade accord is predicted to significantly enhance the manufacturing landscape while bolstering the service sector, working in tandem with India’s ongoing trade negotiations with the United Kingdom. Representing nearly a third of global trade, the agreement reinforces a mutual commitment to democratic values and the rule of law between India and the EU.

Negotiations for this FTA commenced in 2007 but have encountered several delays. Its impending conclusion illuminates a new era in global trade relations as international alignments evolve. European Commission President Ursula von der Leyen, who recently participated in India’s Republic Day festivities, also referred to it as the "mother of all trade deals."

The agreement is anticipated to lower tariffs on a variety of consumer and industrial goods exchanged between India and EU nations. While some agricultural products may be exempted, the deal promises increased market access for EU automobile exports, complete with an established export cap.

This landmark agreement is aimed at strengthening economic bonds, generating employment, and unveiling new investment avenues between India and the EU, thereby fortifying their strategic alliance.