New Delhi, January 27
India and the European Union will on Tuesday announce what has been touted as the 'Mother of all deals' after the long negotiations ended successfully. India and the EU together represent almost one-fifth of global trade and around 25 per cent of the global population, highlighting the growing economic and strategic weight of the partnership.
The EU and India are close partners working to promote economic prosperity, a rules-based international order and sustainable development. Trade and investment remain central pillars of this relationship.
At the EU-India summit scheduled for Tuesday, leaders from both sides are expected to adopt a joint comprehensive strategic agenda and discuss trade in the context of the ongoing free trade agreement negotiations, which were first launched in 2007 and relaunched in 2022 and concluded on Monday.
Speaking on the upcoming deal, European Comission President Ursula von der Leyen said, "India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness. Leveraging our complementary strengths. And building mutual resilience. We are showing a fractured world that another way is possible."
European Council President Antonio Costa echoed that thought saying, "India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. "
In trade in goods, the EU is India's second-largest trading partner, right after China and ahead of the United States, accounting for 11.5 per cent of India's total goods trade.
As per the official data, in 2024, EU-India trade in goods was valued at over Euro 120 billion. This included Euro 71.4 billion worth of EU imports from India and Euro 48.8 billion in EU exports to India.
Over the last decade, bilateral trade in goods has doubled. During this period, EU imports from India grew by 140 per cent, while EU exports to India increased by 58 per cent, showing the steady expansion of commercial ties.
The main goods exported by the EU to India include machinery and appliances, transport equipment and chemicals. On the other hand, the EU primarily imports machinery and appliances, chemicals and fuels from India.
Trade in services has also seen strong growth. In 2024, EU-India trade in services was worth over Euro 66 billion, with more than Euro 37 billion in EU imports and around Euro 29 billion in EU exports. Over the past decade, trade in services between the two sides has more than doubled, recording a growth of 243 per cent.
Key services traded between India and the EU include telecommunications, computer and information services, other business services such as professional and management consulting, and transport services.
Foreign direct investment (FDI) further reflects the depth of the relationship. In 2024, the EU's foreign direct investments in India were valued at over Euro 132 billion, making the EU the leading investor in the country.
On the policy front, the EU and India relaunched negotiations for a free trade agreement (FTA) in June 2022. At the same time, separate negotiations were initiated on investment protection and geographical indications.
The trade talks aim to remove barriers and will help in boosting the export more, open services.
- ANI
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