EU needs to deliver as India steps up pace to roll out free trade pact: Report
New Delhi, July 9
India, the world's fastest growing economy, has gained increasing importance among Western countries amid the drastic changes in the global landscape triggered by Donald Trump taking over as US President, China's increasing alienation and the continuing Ukraine-Russia war, according to a new report.
The India-EU free trade agreement (FTA) reflects this change as Europe looks to diversify its markets, fortify its supply chains and find reliable strategic partners.
However, India is not passively waiting for Brussels to set the pace. The Indian government has begun working to implement the commitments made in the pact as quickly as possible and to protect the economic benefits of the agreement from its initial phase. It is now up to the EU to prove that it can deliver on what it promises as a bloc, according to an article in the European Conservative.
"The EU presents its relationship with India as one of its major geo-economic bets. Bilateral trade in goods and services already exceeds 180 billion euros annually, and Brussels estimates that the agreement could save European exporters around 4 billion euros a year in tariffs. For the Commission, India is an indispensable partner because of the size of its market, its demographic weight, its industrial capacity, and its strategic position in the Indo-Pacific," states the article by Javier Villamor, a Spanish journalist.
The article highlights that India has now asked Brussels for guarantees against future European restrictions that could affect exports of certain recyclable materials, including metal scrap used by the steel and aluminium industries. The issue is technical, but it serves to test the extent to which the EU can reconcile its internal rules with the trade commitments it signs with strategic partners.
India and Western Europe will continue to tighten their ties. What remains to be seen is whether the European Union will be able to act as a credible trading bloc, or whether it will once again show that its geopolitical ambition moves faster than its capacity for execution, the article observes.
— IANS
Reader Comments
The EU needs India more than India needs them, honestly. With China becoming unreliable and Trump's policies shaking things up, Europe is desperate for a reliable partner. Our market is massive, and our demographic dividend is unmatched. But we must ensure this pact protects our domestic industries too, especially small businesses. 🇮🇳
As someone who works in international trade, I can see why India is being cautious. The EU's internal regulations, especially on environment and recyclables, can be a nightmare for exporters. India is right to ask for guarantees upfront. But both sides need to move faster—the world isn't waiting for us.
Arre yaar, it's all talk until something concrete happens. The EU and India have been discussing this FTA for over a decade! Let's see if the EU can actually act as one bloc, or if individual member states will block progress again. And please, don't let this become another one-sided deal where Indian farmers and MSMEs suffer.
This is a smart move by India. The timing is perfect—while the EU is trying to diversify away from China, India can negotiate from a position of strength. The recyclable materials issue is a classic example of how EU regulations can create non-tariff barriers. India must not sign anything that hurts our manufacturing sector.
The EU's 'geo-economic bet' on India is good, but let's not get too excited. Europe has its own political divisions and protectionist tendencies. India should push for a clear timeline and dispute resolution mechanism. We've seen how the EU drags its feet on trade issues. Time for action,
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.