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India-EU Free Trade Pact Nears Signing This Month Amid High-Level Visits

India and the European Union are poised to sign a long-awaited free trade agreement as early as this month, with negotiations in the final stages. The signing is expected around the India-EU Summit following the Republic Day parade, where top EU leaders will be chief guests. High-level visits and statements from German and Indian officials underscore the political momentum behind concluding the pact. The agreement is viewed as strategically important for creating a balanced trading framework and strengthening supply chains.

Key Points: India-EU Free Trade Agreement Set for January Signing

  • Pact signing expected this month
  • 20 of 24 FTA chapters finalized
  • EU leaders to attend Republic Day
  • Agreement aims to fix supply chains
2 min read

India, EU likely to sign free trade pact this month

India and the EU are finalizing a free trade pact, with signing expected this month during visits by top EU leaders for the Republic Day summit.

"We conducted detailed deliberations on key areas of the proposed India-EU FTA. - Piyush Goyal"

New Delhi, Jan 15

India and the European Union may sign the proposed free trade agreement as early as this month during the official visit of the top EU leaders to New Delhi, who will also be the chief guests at the prestigious Republic Day parade on January 26.

Commerce Secretary Rajesh Agrawal told journalists that the India and EU negotiators were very close to finalising a trade agreement and were looking at wrapping up the loose ends before the top leadership meeting scheduled for January 27, a day after the Republic Day parade.

He said that as many as 20 of 24 chapters under the India-EU FTA have been finalised, and the few remaining issues were being discussed in the ongoing negotiations.

European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen will be on an official visit to India from January 25 to 27 at the invitation of Prime Minister Narendra Modi, and will also officiate as Chief Guests of India's 77th Republic Day celebrations on January 26. The two leaders will then attend the India-EU Summit the next day.

German Chancellor Friedrich Merz, during his visit to India this week, had also indicated that the India-EU trade pact could be signed by the end of January.

Merz said Germany strongly supports the free trade agreement. He urged the European Union and India to expedite the signing of the free trade agreement, as this would help fix supply chains that have faced disruptions over the past year.

Commerce Minister Piyush Goyal on Tuesday listed the trade talks with the EU in Brussels as a "major highlight" from his Ministry. "Held a productive dialogue with the European Union Trade and Economic Security Commissioner, Mr Maros Sefcovic, in Brussels. We conducted detailed deliberations on key areas of the proposed India-EU FTA. Also emphasised the strategic importance of concluding a fair, balanced, and ambitious agreement that aligns with their shared values, economic priorities, and commitment to a rules-based trading framework," the minister said.

He further stated that he visited Liechtenstein and reviewed the implementation of the India-EFTA Trade and Economic Partnership Agreement with the top political leadership.

- IANS

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Reader Comments

P
Priya S
Finally! We've been hearing about this for years. I just hope the agreement truly benefits our farmers and small businesses, not just big corporations. The details on dairy and auto parts will be key. Fingers crossed for a good deal.
R
Rohit P
Good step for the economy. But we must be careful. Europe has very strict standards. Our MSMEs will need support to adapt. The government should announce training and subsidy schemes alongside the signing.
S
Sarah B
As someone working in exports, this is the boost we needed. Smoother access to the EU market means we can compete better with Vietnam and Bangladesh. Hope the visa facilitation for professionals is also part of the deal!
V
Vikram M
Respectfully, I'm a bit skeptical. Past FTAs haven't always lived up to the hype. I hope our negotiators have held firm on data privacy and digital taxation issues. We shouldn't compromise our digital sovereignty for a quick signing.
K
Kavya N
Having EU leaders as chief guests on Republic Day and then signing the deal is brilliant optics. It shows India's growing strategic importance. Jai Hind! 🎉 Now, can we get cheaper Swiss chocolates and French wines? Just kidding... mostly.

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