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India-EU Trade Deal to Unlock $75B Market, Boost Tech & Manufacturing

The India-EU Free Trade Agreement is poised to significantly strengthen economic integration between the two major economies. The deal will see the EU abolish tariffs on 9,425 lines of Indian exports, unlocking preferential access valued at $75 billion and aiding India's goal of reaching $300 billion in engineering exports. It focuses on advancing collaboration in future-ready sectors like AI, clean technologies, and semiconductors to support India's technological advancement. The agreement also reinforces intellectual property protections and provides special recognition for India's Traditional Knowledge Digital Library.

Key Points: India-EU Trade Deal: $75B Access, Tech & Manufacturing Boost

  • Unlocks $75B preferential market access
  • Aims for $300B engineering exports
  • Boosts AI, clean tech & semiconductor collaboration
  • Strengthens IP protections & traditional knowledge
2 min read

India-EU trade deal will strengthen economic integration between major global economies: Ashwini Vaishnaw

India-EU FTA to abolish tariffs on 9425 export lines, unlock $75B market access, and boost collaboration in AI, clean tech, and semiconductors.

"advancing collaboration in future-ready sectors such as AI, clean technologies and semiconductors. - Ashwini Vaishnaw"

New Delhi, January 28

The India-EU Free Trade Agreement is set to strengthen economic integration between two of the world's major economies, marking a significant shift in global trade dynamics.

Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, on Tuesday stated on X that the deal accounts for one-third of global trade and supports 25 per cent of global GDP. The agreement brings together two of the world's top economies, aiming to streamline market access and technological cooperation.

As part of the pact, the European Union will abolish tariffs on 9425 lines of Indian exports, unlocking preferential access valued at USD 75 billion. This move is expected to accelerate India's ambition to reach USD 300 billion in engineering exports by providing entry into a USD 2 trillion EU market.

Minister Vaishnaw noted that the deal will focus on "advancing collaboration in future-ready sectors such as AI, clean technologies and semiconductors." This partnership is designed to support India's technological advancement through R&D collaboration and technology transfer.

The agreement further emphasises the enhancement of India's manufacturing capabilities. It aims at "enhancing the competitiveness of the engineering and manufacturing ecosystem" by strengthening MSME networks and regional clusters.

These measures are intended to help Indian firms secure global contracts and integrate more deeply into international supply chains. According to information shared by Vaishnaw, the deal is also geared toward "supporting Indian startups to compete and grow across global value chains," providing them with the necessary framework to scale operations in the European market.

A critical component of the trade deal involves the protection of the knowledge economy. The framework "reinforces intellectual property protections under TRIPS" while firmly affirming the Doha Declaration to safeguard public interest.

India has secured special technical assistance and incentives to strengthen its patent ecosystem. Furthermore, the agreement provides special recognition to India's Traditional Knowledge Digital Library (TKDL).

Vaishnaw highlighted that these provisions are essential for "reinforcing innovation and IP protection, supporting India's knowledge economy."

- ANI

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Reader Comments

P
Priya S
Finally some positive news on the economic front. The focus on AI, clean tech, and semiconductors is crucial for our future. The protection for our traditional knowledge in the TKDL is a very important win – our heritage needs safeguarding in global deals.
R
Rohit P
Sounds promising on paper. But will the benefits actually trickle down to small businesses and startups, or will only the big corporates gain? The government must ensure a level playing field. Execution is key.
S
Sarah B
As someone working in the tech startup space, the mention of helping startups compete in global value chains is the most exciting part. Access to EU markets and collaboration can be a massive boost for innovation here in Bangalore and Hyderabad.
V
Vikram M
One-third of global trade! That's a staggering figure. This strategic partnership reduces our over-dependence on any single market and strengthens our geopolitical standing. A strong step towards becoming a $5 trillion economy.
K
Karthik V
Good move, but we must be cautious. We need to ensure our farmers and certain sensitive sectors are protected. Past FTAs have had mixed results. Hope the fine print is in our national interest. Jai Hind.

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